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GIFT  OF 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

Microsoft  Corporation 


http://www.archive.org/details/digestofrepliesiOOunitrich 


APR  29  1921 


US 


FEDERAL  TRADE  COMMISSION 


DIGEST  OF  REPLIES 

IN  RESPONSE  TO  AN  INQUIRY  OF  THE 

FEDERAL  TRADE  COMMISSION 

RELATIVE  TO  THE  PRACTICE  OF 

GIVING  GUARANTEE  AGAINST 

PRICE  DECLINE 


MAY  27,  1920 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1920 


Victor  Mubdock,  Chairman. 
Huston  Thompson. 
William  B.  Colver. 
Nelson  B.  Gaskill. 
John  Garland  Pollard. 

J.  P.  Yoder,  Secret  urn 


GIFT 


TABLE  OF  CONTENTS. 


Page. 

Questionnaire 6 

Alphabetical  list  of  individuals,  firms,  corporations,  and  commercial  and 

trade  associations 61 

REPLIES  FAVORING  GUARANTEE  AGAINST  PRICE 
DECLINE. 

(Arranged  by  industries.) 

Agricultural    implements 7 

Automobile  equipment 9 

Canning 9 

Cotton 9 

Drugs 9 

Dry  goods 10 

Fly   paper 10 

Food  manufacturers  and  foodstuffs 10 

Gas  and  gas  engines 11 

Grocers 11 

Hardware 20 

Ice 25 

Iron  and  steel 26 

Lighting   equipment 27 

Lumber _:_  27 

Machinery 28 

\  Machine  tools 28 

Mill  supplies 29 

Oil,  edible 29 

Overalls : , 29 

Paint  and  varnish 29 

Paper  manufacturers 31 

Plumbing  supplies 33 

Roofing J 33 

Screens \ 33 

Shirts 1 33 

Shovels 34 

Silos 34 

Tents,  awnings,  etc 34 

Toilet  articles 34 

Walnut  growers 35 

Woolen  textiles 35 

(3) 


456561 


Miscellaneous :  Page. 

Attorneys  representing  different  industries 36 

Axes i .36 

A.  B.  Jones  Co 36 

Barn  fixtures 36 

Engineering 36 

Exporters  and  importers 35 

Fairbanks  Co 36 

,         Wind  engines  and  pumps 37 

REPLIES  OPPOSING  GUARANTEE  AGAINST  PRICE 
DECLINE. 

Alfalfa 38 

Automobile  accessories  and  tractors 38 

Blacksmith  supplies 38 

Box  makers . 39 

Brass  and  bronze 39 

Cereals 39 

Chemicals 39 

Chocolate , 39 

^  Cloth 40 

Coffee,  extracts,  and  spices 40 

Cordage  and  rope__ 41 

Cotton  goods,  thread,  etc 41 

Dyestuffs . 42 

Electrical   supplies 42 

Filing  equipment,  metal 42 

Food  manufacturers  (animal,  grain,  etc.) 42 

Glycerine  refineries 43 

Grocers 43 

Hardware 43 

Honey 44 

Hosiery : 44 

House  furnishings . 45 

Implements  and  carriages 46 

Iron  and  steel 45 

Jellies 46 

Knit  goods 46 

Live  stock 47 

Lumber 47 

Machinery 47 

Machine  tools 48 

Milling,  grain,  flour,  corn 48 

Molasses 49 

Nuts,  edible 49 

Oil  and  petroleum 49 

Overalls 50 

Paints  and  varnishes . 50 

Paper  and  paper  products . : 51 

Boxes  and  box  boards 52 

Roofing 52 

Peanuts 52 

Plumbers'  supplies 52 


Page. 

"Rope 41 

Salt 53 

Saws 53 

Shoes,  rubber 53 

Soap 53 

Solder 54 

Tacks •— — 54 

Tin  plate 54 

Tires 55 

Typewriter  ribbons 55 

Miscellaneous : 

Construction  industries 56 

Lamp  standardization ; 56 

Manufacturers'   agents 55 

Manufacturers  and  exporters 55 

Merchandise,  wholesale  jobbers _, 56 

Novelties 56 

Sulphonapthol 56 

NONCOMMITTAL  REPLIES. 

Containers 57 

Cotton  mills i 57 

Hardware 57 

Hardwood • 57 

Livestock 57 

Machinery 58 

Paper 57 

Stoves 58 

Textiles 58 

Vulcanized  fiber  products 58 

Wire  rope 50 

FAVORABLE  REPLIES  WITH  RESERVATIONS. 

Agricultural  implements 59 

Cranberries 59 

Hardware 59 

Machine  tools 60 

Paint 60 

Windmills{  gas  engines,  etc 60 


QUESTIONNAIRE. 


The  following  is  copy  of  circular  letter  sent  out  by  the  Federal 
Trade  Commission  on  December  26,  1919,  to  those  interested  in  the 
subject  of  guarantee  against  price  decline : 

Gentlemen:  The  question  of  guarantee  against  decline  in  price  has  been 
the  subject  of  so  many  complaints  before  the  commission  and  opinion  seems  to 
be  so  diverse  that  the  commission  has  determined  to  go  into  the  whole  matter 
thoroughly. 

As  a  basis  for  the  necessary  expenditures  attending  upon  such  an  inquiry 
such  formal  complaints  have  been  issued  presenting  various  phases  of  the 
subject.  To  the  end  that  every  party  at  interest  may  be  fully  represented  the 
commission  is  inviting  generally  producers,  manufacturers,  merchants  (whole- 
sale and  retail),  and  consumers  to  declare  their  interest,  so  that  the  commission 
may  know  what  parties  should  be  represented. 

The  commission  is  asking  you  therefore  to  communicate  as  speedily  and  as 
widely  as  possible  with  your  membership,  advising  them  of  the  invitation  and 
to  notify  the  commission  of  the  nature  of  their  interest  in  the  subject,  if  any. 

As  soon  as  this  list  of  the  parties  at  interest  in  the  matter  can  be  compiled 
it  is  the  purpose  of  the  commission  to  invite  each  or  any  of  them  to  submit  his 
observations  in  writing.  This  follows  the  custom  of  the  commission  in  numer- 
ous other  similar  cases. 

A  reasonable  time  limit  for  the  filing  of  written  statements  will  be  given, 
after  which  they  will  be  assembled  and  as  far  as  possible  classified  and  each 
correspondent  will  be  furnished  with  a  copy  of  the  whole  document. 

As  soon  thereafter  as  is  possible  it  is  the  purpose  of  the  commission  to 
call  a  general  hearing  at  Washington,  at  which  parties  at  interest  may  be 
present  in  person,  by  representative,  or  by  counsel,  and  an  orderly  method  for 
hearing  the  matter  will  be  laid  out. 

As  in  everything  where  the  public  interest  is  involved,  the  utmost  expedition 
consistent  with  care  and  full  opportunity  for  the  presentation  of  all  sides  is  to 
be  desired. 

Letters  similar  to  this  are  being  sent  to  various  associations  and '  concerns, 
but  the  commission  feels  that  its  present  list  by  no  means  includes  all  those 
whose  interests  may  be  touched  by  a  final  determination  of  the  question. 

May  we  ask  you  therefore  to  give  the  widest  possible  currency  to  this 
invitation? 

By  direction  of  the  commission. 
Very  truly,  yours, 

Victor  Muedock,  Chairman. 

(6) 


REPLIES  FAVORING  GUARANTEE  AGAINST  PRICE  DECLINE. 


AGRICULTURAL  IMPLEMENTS. 

American  Seeding  Machine  Co.,  Springfield,  Ohio.  Manufacturers. 

We  favor  continuation  of  principle,  conditions  of  guarantee  to  be 
such  as  to  safeguard  interests  of  buyer  and  seller.  In  most  cases 
safeguards  interests  of  buyer  and  encourages  freer  purchases. 

The  Appleton  Manufacturing  Co.,  Batavia,  111.  Manufacturers. 

At  present  time  feel  quite  desirable.    Encourages  dealers  to  carry 

normal  stock  and  enables  shipments   in   advance   of  time   needed. 

Saves  delays  in  transit  and  allows  manufacturer  to  ship  goods  early. 

D.  F.  Avery  &  Sons  Co.,  Louisville,  Ky.  Manufacturers. 

Much  in  favor  of  this  custom  as  believe  principle,  as  applied  to  un- 
delivered portion  of  contracts,  such  as  steel  bars,  steel  plates,  etc.,  has 
tendency  to  insure  regular  and  continuous  factory  operation  and  gives 
manufacturer  opportunity  to  buy  on  less  fluctuating  market.  How- 
ever, such  guarantee  should  be  permissive  and  not  mandatory. 

A.  D.  Baker  Co.,  Swanton,  Ohio.  Manufacturers. 

Favor  continuance  of  this  principle,  but  as  applying  only  to  un- 
delivered portion  of  contracts  covering  steel  plates,  bars,  lumber,  etc. 
Practice  regarded  as  beneficial  to  business  in  general. 

Beeman  Tractor  Co.,  Minneapolis,  Minn.  Manufacturers. 

Favors  continuance  of  guarantee  and  expresses  belief  that  it  is  a 
much-needed  safeguard  in  business,  especially  in  times  like  this,  and 
works  no  hardship  at  any  stage  of  the  business. 

Case  Plow  Works  Co.,  Racine,  Wis.  Manufacturers. 

Tends  to  stabilize  business  and  creates  confidence.    Jobbers  able  to 
anticipate   needs   in   advance,  giving  manufacturer  more   accurate 
knowledge  as  to  his  own  needs.    Is  accorded  this  privilege  in  its  busi- 
ness and  extends  same  to  customers. 
Challoner  Co.,  Oshkosh,  Wis.  Manufacturers. 

Manufactures  horseshoes,  chains  for  motor  trucks,  etc.,  and  finds 
it  necessary  to  give  guarantee  in  order  to  encourage  jobbers  to  order 
sufficiently  in  advance  to  permit  of  best  factory  operation  and  proper 
distribution  of  shipments.  Does  not  believe  business  could  be  con- 
ducted on  any  other  basis. 

(7) 


•;/:-.•     :•  ..I^-'.- 
Deere  &  Co.,  Moline,  III.  Manufacturers. 

Believes  guarantee  essential  to  conduct  of  agricultural  implement 
business.  Manufacturer's  storage  facilities  limited  to  two  months' 
output  and  jobbers  will  not  buy  season's  requirements  in  advance 
without  guarantee.  Present  practice  permits  more  even  distribution 
of  shipments.  Guarantee  should  be  limited  to  following  conditions : 
To  definite  date,  immediately  preceding  farmers'  demand ;  only  to  de- 
clines in  manufacturers'  own  price ;  and  cover  only  goods  on  hand  at 
specified  date.  Sole  object  of  extending  guarantee  should  be  to 
bring  about  better  factory  operations  and  more  even  spread  of  ship- 
ments. 

Dempster  Mill  Manufacturing  Co.,  Beatrice,  Nebr.  Manufacturers. 

As  applied  to  season's  requirements  for  iron  and  steel,  believes 
practice  should  be  continued.  Does  not  comment  with  reference  to 
guarantee  to  jobber. 

R.  Herschel  Manufacturing  Co.,  Peoria,  111.  Manufacturers. 

As  applied  to  unfilled  part  of  contracts,  believe  practice  should  be 
continued;  that  is  extent  to  which  this  concern  is  the  beneficiary 
of  such  custom. 

Moore  Plow  &  Implement  Co.,  Greenville,  Mich.  Manufacturers. 

Beyond  expression  that  approval  is  given  to  practice  does  not  make 
comment. 

Owensboro  Wagon  Co.,  Owensboro,  Ky.  Manufacturers. 

Following  recent  hostilities,  to  encourage  placement  of  orders, 
manufacturers  resorted  to  guarantee  against  decline  and  thereby 
greatly  stabilized  conditions.  Do  not  believe  guarantee  works  harm 
to  either  buyer  or  seller. 

Southern  Plow  Co.,  Columbus,  Ga.  Manufacturers. 

As  a  general  proposition,  opposed  to  price  guarantee,  but  believe 
that  guarantee  should  be  given  as  related  to  unshipped  portion  of 
contract. 

Swayne,  Robinson  &  Co.,  Richmond,  Ind.  Manufacturers. 

Provides  means  by  which  manufacturer  may  operate  plant  more 
continuously  and  does  not  impose  hardship  on  anyone. 

Towers  &  Sullivan  Manufacturing  Co.,  Rome,  Ga.  Manufacturers. 

Believe  that  guarantee  as  applied  to  raw  materials  would  facilitate 
factory  operation  and  provide  adequate  stocks  to  meet  demand. 
Ought  to  lower  unit  cost. 

Winona  Wagon  Co.,  Winona,  Minn.  Manufacturers. 

Believe  manufacturers  should  have  benefit  of  price  guarantee  as 
applied  to  unfilled  portion  of  contract  and  feels  that  no  hardship  is 
imposed  on  anyone. 


AUTOMOBILE  EQUIPMENT. 

Bright  &  Co.,  Reading,  Pa.  Jobbers. 

Guarantee  induces  buyer  to  stock  up  for  a  long  period,  such  stock- 
ing insuring  adequate  flow  of  goods  through  retailer.  Helps  manu- 
facturers to  handle  business. 

CANNING. 

Warrensburg  Canning  Co.,  Warrensburg,  111.  Canners. 

Seldom  practice  custom.  Some  manufacturers  extend  guarantee 
and  others,  where  crop  has  been  large  and  cost  to  pack  lower  than 
estimated  at  time  of  taking  order,  rebate  jobbers  at  end  of  season. 

Seems  to  be  no  ground  for  complaint  from  any  one  as  to  practice. 

■ 

COTTON. 

Lauderdale  Cotton  Mills,  Meridian,  Miss.  Manufacturers. 

In  our  business  we  need  the  right  to  enter  into  contracts  for 
annual  supply  of  dyestuffs,  with  guarantee  against  decline  as  applied 
to  undelivered  portion  of  contract.  This  practice  enables  manu- 
facturers the  better  to  gauge  their  sales. 

DRUGS. 

National  Wholesale  Druggists'  Association,  Trade  Association. 

New  York,  N.  Y. 

Opinion  furnished  by  members  of  this  trade  expresses  approval 
for  following  reasons :  Encourages  jobbers  to  carry  adequate  stocks, 
stabilizes  relations  between  manufacturer  and  jobber  and  assures 
more  continuous  operation  of  factories,  with  resultant  steady  em- 
ployment of  labor.  Manufacturer  in  touch  with  primary  markets 
and  able  to  closely  estimate  future  conditions.  Jobbers'  profit  too 
small  to  permit  assumption  of  possible  loss.  Approximately  70  per 
cent  of  goods  handled  by  wholesale  druggists  subject  to  price  fixed  by 
manufacturer.  Practice  is  aid  to  manufacturer  in  providing  com- 
plete and  quick  distribution  to  consuming  market.  Do  not  believe 
guarantee  results  in  higher  prices.  In  cases  of  epidemic,  if  insufficient 
stocks  in  hands  of  jobbers,  abnormal  demand  quickly  drives  up  prices. 

Smith,  Kline  &  French  Co.,  Philadelphia,  Pa.  Wholesalers. 

To  order  discontinuance  of  practice  would  disarrange  business 
and  in  some  instances  result  in  higher  prices  to  consumers.  Two  cases 
in  point  as  related  to  their  business  are  here  given : 

Naphthalene,  of  which  this  company  claims  to  be  the  largest  dis- 
tributor in  the  United  States,  is  purchased  by  them  from  the  manu- 
facturer under  such  guarantee,  with  the  same  protection  extended  by 
11403—20 2 


10 

them  to  the  retail  dealer.  If  manufacturer  not  able  in  advance  to 
calculate  annual  volume  of  business,  which  can  not  be  assured  with- 
out price  being  fixed  subject  to  guarantee,  he  will  be  obliged  to  curtail 
production,  and  the  resulting  shortage  of  this  commodity  will  lead 
to  a  higher  price,  aside  from  the  fact  that  a  large  part  of  the  public 
demand  will  go  unsatisfied. 

The  second  case  cited  is  that  of  the  commodity  aspirin,  of  which 
commodity  this  company  claims  to  be  the  second  largest  dealer  in  the 
United  States.  Contracts  made  by  this  company  with  retailers  for 
their  aspirin  requirements  contain  a  guarantee  clause  and  this  has 
resulted  in  assuring  adequacy  of  supply  and  fixed  and  favorable 
price  to  the  consumer. 

DRY  GOODS. 

Wm.  R.  Moore  Dry  Goods  Co.,  Memphis,  Tenn.  Wholesalers. 

In  instances  where  assumption  of  such  responsibility  was  war- 
ranted have  guaranteed  prices  against  decline.  Believe  should  be 
universally  practiced,  especially  in  seasonal  lines.  Custom  makes 
for  more  even  factory  operation.  Spinners  have  opportunity  to 
"hedge"  on  purchases  of  raw  materials  and  should  pass  such  pro- 
tection along  to  dealers. 

Southern  Wholesale  Dry  Goods  Association,  Trade  Association. 

Richmond,  Va. 

Concensus  of  opinion  in  jobbing  trade  supports  practice  of  guar- 
antee. 

FLY  PAPER. 

O.  &  W.  Thum  Co.,  Grand  Rapids,  Mich.  Manufacturers. 

Provides  adequate  stock  in  hands  of  jobbers  and  has  resulted  in 
material  increase  in  annual  volume  of  business.  Examination  of 
our  accounts  from  1898  to  date  shows  that  such  expense  has  im- 
posed a  burden  of  but  one-fourth  of  a  cent  per  case  of  250  double 
sheets  of  our  product.  Have  not  found  that  jobbers  are  encouraged 
to  speculate.  Expense  incident  to  guarantee  incurred  during  one 
year  not  added  to  cost  of  product  succeeding  year. 

FOOD  MANUFACTURERS  AND  FOOD  STUFFS. 

Baker  Food  Products  Co.,  Chicago,  111.  Manufacturers. 

Has  always  been  their  practice  to  guarantee  prices  only  to  date  of 
shipment.    No  comment  made. 

OHver-Finne  Co.,  Memphis,  Tenn.  Manufacturers  and  Jobbers. 

Enables  jobber  to  safely  contract  for  supply  of  staple  goods  to 
properly  meet  demand.    When  declines  occur  at  primary  markets, 


11 

consumer  gets  immediate  benefit,  but  frequently  in  case  of  advance 
in  price  full  amount  of  increase  is  not  imposed  upon  consumer. 

GAS  AND  GAS  ENGINES. 

Citizens  Gas  Co.,  Indianapolis,  Ind.  Gas  Works. 

In  contracts  executed  for  purchases  of  coke  gives  guarantee. 

New- Way  Motor  Co.,  Lansing,  Mich.  Manufacturers. 

Practice  fair  to  both  seller  and  buyer  and  secures  maximum  results 
as  to  production  and  delivery. 

GROCERS. 

Anthony  Wholesale  Grocery  Co.,  Anthony,  Kans.  Jobbers. 

Candid  opinion  that  manufacturers'  guarantee  on  staple  items  use- 
ful arrangement  for  benefit  of  all  concerned.  Experience  in  whole- 
sale grocery  business  that  items  carrying  guarantee  sold  on  narrower 
margin  than  otherwise.  Under  present  conditions  lack  of  guarantee 
causing  wholesale  grocer  to  be  overcautious.  In  the  past,  have  car- 
ried reasonable  amounts  of  merchandise  and  there  has  been  no 
speculation  among  wholesale  grocers  on  guaranteed  items. 

Atlanta  Wholesale  Grocers,  Atlanta,  Ga.  Jobbers. 

To  abandon  policy  would  lessen  car-lot  shipments,  adding  cost  to 
consumer  and  would  eliminate  cooperative  plan  by  which  manu- 
facturer has  free  use  jobber's  floor  space  in  exchange  for  guarantee, 
adding  to  manufacturer's  cost,  paid  by  consumer.  Large  dealers 
in  season  of  plenty  would  stock  on  speculative  basis,  taking  advan- 
tage of  markets  as  they  advance.  Small  dealers  at  a  disadvantage 
with  firms  of  large  resources  unless  price  guaranteed  to  all.  Loss 
dealers  sustain,  without  guarantee  made  up  in  some  other  way  and 
consumer  pays.  Present  plan  affords  consumer  supply  at  correct 
prices;  also  affords  carriers  even  freight  movement.  To  prohibit 
guarantee  would  congest  stocks  at  manufacturing  plants. 
Barnes  Grocer  Co.,  Popular  Bluff,  Mo.  Wholesalers. 

Guarantee  has  been  advantageous  to  jobbers  and  retailers.  Believes 
consuming  public  not  adversely  affected,  as  jobbers  and  retailers,  in 
turn,  sell  at  lower  prices  upon  notification  from  factory. 

Bell-Wayland  Co.,  Oklahoma  City,  Okla.  Wholesalers. 

Enables  small  jobbers  to  buy  in  large  units  and  secure  benefit  of 
lower  price  for  goods  and  transportation.    All  price  reductions  im- 
mediately pass  to  consumer. 
John  N.  Bey  &  Co.,  Vincennes,  Ind.  Wholesalers. 

Insures  large  jobbing  stocks  and  narrow  margin  jobbing  profit. 
Believes  fair  to  dealers  and  consumers,  and  regarded  as  satisfactory 
method. 


12 

Blaui's  Sons  Co.,  Burlington,  Iowa.  Wholesalers. 

While  guarantee  in  canned  milk  extends  over  period  of  12  months, 
actually  operates  only  in  spring  months  when  fresh  milk  is  scarce  [?] 
and  price  of  canned  milk  declines.  If  guarantee  not  given,  too 
great  caution  would  be  exercised  by  jobbers  and  sufficient  stock  would 
not  be  available  to  adequately  supply  the  trade. 
Booming  ton  Wholesale  Grocery  Co.,  Bloomington,  Ind.  Wholesalers. 

Favors  guarantee  against  price  decline  to  prevent  manufacturers 
from  selling  direct  at  lower  prices  than  jobbers  able  to  quote.    Need 
guarantee  of  some  sort. 
Boniface,  Weber  &  Allen,  Muncie,  Ind.  Wholesalers. 

Withdrawal  of  guarantee  would  unsettle  business,  disturb  estab- 
lished custom,  and  create  uncertainty. 
Buckley-Terry  Co.,  Laurel,  Miss.  Wholesalers. 

To  supply  retail  trade,  wholesale  dealers  are  obliged  to  carry  full 
stocks.  Generally  aided  by  a  guarantee  against  decline.  Retailers 
carry  small  stocks  and  look  to  jobbers  for  quick  deliveries.  Jobber 
ought  to  have  guarantee  for  at  least  30  to  60  days,  which  admits  of 
no  speculation. 
F.  C.  Bushnell  Co.,  New  Haven,  Conn.  Wholesalers. 

Does  not  believe  practice  a  menace  to  trade. 
Calhoun  Grocery  Co.,  Anniston,  A'a.  Wholesalers. 

Believes  sound  business  practice  which  permits  jobbers  to  carry 
adequate  stocks. 
The  C.  Callahan  Co.,  La  Fayette,  Ind.  Wholesalers. 

Through  former  guarantee  on  canned  milk  manufacturer  able  to 
induce  wholesaler  to  carry  adequate  stock.  Decline  in  price  di- 
rectly affects  farmers.  Farmers  are  being  encouraged  to  increase 
herds,  which  adds  to  milk  supply  and,  by  the  rotation  of  crops,  in- 
creases grain  output.  Induces  jobbers  to  take  surplus  stocks  held 
by  manufacturers  with  knowledge  that  no  loss  will  result  through 
price  decline.  Margin  of  profit  to  jobbers  not  sufficient  to  justify 
large  capital  tied  up  unless  subject  to  guarantee. 
William  D.  Cleveland  &  Sons,  Houston,  Tex.  Wholesalers. 

At  present  time  inadequate  transportation  facilities  require  job- 
bers to  buy  in  large  quantities  and  exact  guarantee.  If  goods  were 
in  manufacturer's  possession,  loss  would  be  absorbed  by  them  and 
even  though  goods  are  shipped  to  jobber  in  advance  of  time  needed, 
liability  on  account  of  decline  should  not  be  transferred. 
Columbus  Grocery  Co.,  Columbus,  Ga.  Wholesalers. 

Practice  might  encourage  some  jobbers  to  overbuy,  but  advantages 
by  trade  in  general  are  so  many  that  believe  practice  should  be  con- 
tinued. 


13 

Colvin,  Atwell  &  Co.,  Pittsburgh,  Pa.  Wholesalers. 

Believes  consumer  beneficiary  of  guarantee,  and  not  wholesale  or 
retail  dealer.  This  custom  enables  wholesaler  to  carry  sufficient 
supply  of  canned  milk,  which  he  can  purchase  and  store  in  the  spring 
and  summer  months,  at  lowest  prices.  Guarantee  insures  minimum 
price  and  without  such  guarantee  adequate  stocks  will  not  be  carried. 
Cooper-Dickinson  Grocery  Co.,  Little  Rock,  Ark.  Wholesalers. 

In  support  of  view,  recites  recent  decline  in  canned  milk,  when 
jobbed  promptly,  so  it  says,  reduced  price.     Looking  to  packer  for 
guarantee. 
J.  W.  Crook,  Baltimore,  Md.  Wholesaler. 

Asserts  that  in  recent  canned  milk  decline  consumer  immediately 
benefited  2  cents  per  can  and  that  guarantee  was  passed  back  to 
packer. 
Dabney  Bros.,  Florence,  Ala.  Wholesalers. 

Beyond  statement  that  guarantee  should  be  given  to  jobbers,  com- 
ment is  not  made. 
Faucette  Co.,  Bristol,  Tenn.  Wholesalers. 

Guarantee  does  not  deprive  consumer  of  lower  price  when  decline 
occurs  in  primary  market.  Guarantee  encourages  jobbers  to  buy  in 
pooled  car  shipments,  which  provides  quicker  transportation.  Do 
not  believe  jobbers  would  carry  sufficient  stock  to  meet  demand  unless 
they  enjoyed  this  privilege. 
Federated  Merchants,  Cleveland,  Ohio.  Wholesalers. 

Under  system  of  guarantee  any  reduction  in  primary  market  is 
immediately  passed  to  consumer.  Believe  would  be  unfair  to  inter- 
fere with  practice  where  jobber  is  given  50  or' 60  day  guarantee  sub- 
sequent to  receipt  of  goods  in  his  warehouse.  Encourages  jobbers  to 
carry  adequate  stock. 

Gilbert  Grocery  Co.,  Portsmouth,  Ohio.  Wholesale 

Think  concession  one  entirely  within  jurisdiction  of  manufacturer 
to  refuse  or  extend  and  does  not  believe  operates  to  disadvantage  of 
consumers.     Practice  assists  manufacturers  of  new  brands  to  get 
goods  on  market. 
Goddard  Grocer  Co.,  St.  Louis,  Mo.  Wholesalers. 

Does  not  encourage  jobber  to  overstock  speculating  on  advance  in 
price.     Receives  50-day  guarantee  on  all  canned  milk,  and  believes 
practice  entirely  proper. 
A.  Grafe  Co.,  Terre  Haute,  Ind.  Wholesalers. 

Without  guarantee  would  be  obliged  to  increase  margin  of  profit 
as  offset  to  additional  hazard  assumed,    Guarantee  does  not  operate 


14 

to  disadvantage  of  consumer,  as  all  declines  are  immediately  passed 
on  to  public. 

Griffin-Goodner  Grocery  Co.,  Tulsa,  Okla.  Wholesalers. 

Emphatically  in  favor  of  guarantee  on  floor  stocks.  Past  obser- 
vation indicates  that  such  guarantee  results  in  lower  average  price  to 
consumers.  When  price  of  staple  foodstuffs  declines,  retail  trade 
immediately  notified  by  jobbers,  salesmen,  -who  desire  to  make  sales 
at  lower  prices.  Do  not  believe  that  practice  encourages  speculation 
or  overstocking. 

Heisig  &  Norvell,  Beaumont,  Tex.  Wholesalers. 

Enables  jobbers  to  conduct  business  freely  and  keep  merchandise 
moving  on  the  basis  of  the  maximum  of  service  at  a  minimum  cost. 
When  manufacturer  gives  notice  of  price  decline  jobber  passes  bene- 
fit to  retailer.  Practice  does  not  work  hardship  on  the  manufac- 
turer, as  moving  stock  from  his  possession  to  jobber's  relieves  ware- 
house congestion  and  reduces  insurance  liabilities. 

James  W.  Houston  Co.,  Pittsburgh,  Pa.  Wholesalers. 

Believes  fair  to  jobber  in  that  he  does  not  possess  knowledge  of 
primary  markets  and  costs  of  ingredients  composing  manufactured 
articles.  Believes  manufacturer  should  be  so  posted  on  cost  of  raw 
materials  entering  into  his  product  as  will  enable  him  to  safely  ex- 
tend guarantee.  So  far  as  observation  goes  this  practice  chiefly 
relates  to  proprietary  articles.  Jobber's  profit  small  and  he  would 
be  unable  to  suffer  price  decline.  Consumer  benefits  when  price  de- 
clines and  manufacturer  shoulders  loss. 

Illinois  Wholesale  Grocers'  Association,  Trade  Association. 

Peoria,  111. 

Interview  had  by  G.  A.  Stephens,  representative,  Federal  Trade 
Commission,  with  D.  H.  Bethard,  president;  A.  Trefzger,  treasurer; 
Ross  P.  Seaton,  secretary;  and  A.  S.  Oakford,  member  of  advisory 
committee,  Illinois  Wholesale  Grocers'  Association,  elicited  the  fol- 
lowing opinion:  Believe  in  limited  guarantee  which  would  work 
equitably  for  all  parties  concerned,  such  limited  guarantee  applying 
only  to  unsold  parts  of  grocer's  stocks  and  not  to  undelivered  por- 
tions. Does  not  believe  that  it  would  encourage  overbuying,  and 
speculative  element  would  be  eliminated.  Manufacturers  have  more 
complete  knowledge  of  market  conditions  and  better  able  to  assume 
liabilities. 

Indiana  Wholesale  Grocers'  Association,  Trade  Association. 

Indianapolis,  Ind. 

Association  favors  practice,  but  makes  no  further  statement. 


15 

Iowa-Nebraska-Minnesota  Wholesale  Grocers'  Associ-  Trade  Association, 

ation,  Council  Bluffs,  Iowa. 
Extension  of  guarantee  encourages  dealers  to  carry  sufficient  stocks 
and  withdrawal  of  same  would  likely  drive  jobbers  to  concentrate 
on  fewer  brands,  thus  narrowing  the  selection  of  the  public.  En- 
courages introduction  of  new  articles  on  the  market,  which  could 
not  get  foothold  without  such  guarantee.  Enables  jobbers  to  buy 
in  carload  lots,  thus  lowering  unit  cost  of  commodities  and  permits 
them  to  operate  on  smaller  margin  of  profit. 

Jett  &  Wood,  Wichita,  Kans.  Who'esalens. 

To  abolish  practice  would  work  serious  injury  to  business.  As 
offset  to  price  guarantee,  lower  trade  discount  is  given  purchaser 
under  such  contract.  Permits  jobber  to  buy  in  carload  lots  and  re- 
sultant decrease  in  unit  cost  is  passed  to  consumers.  Where  jobber's 
capital  is  involved  in  large  stocks,  loss  in  interest  would  be  borne 
by  them,  so  price  guarantee  really  offsets  such  charge  upon  the 
jobber.  Jobbing  competition  is  keen  and  decline  in  primary  market 
promptly  accrues  to  consumer.  Guarantee  was  recently  withdrawn 
from  sales  of  soap,  but  did  not  bring  about  a  reduction  in  the  price 
of  that  commodity. 

Kentucky  Wholesale  Co.,  Pikeville,  Ky.  Wholesalers. 

Beyond  statement  that  policy  is  favored,  no  comment  is  made. 

Los  Angeles  Grocery  Co.,  Los  Angeles,  Calif.  Jobbers. 

Guarantee  makes  it  possible  for  jobbers  to  carry  sufficient  stock  to 
care  for  trade.  Milk  is  frequently  shipped  great  distances  and  is 
long  time  in  transit,  necessitating  large  stocks  in  hands  of  jobbers. 
Believe  guarantee  serves  interests  of  all  concerned  if  given  for  rea- 
sonable time,  say  30  days. 

J.  E.  Lynd,  Russell,  Ky.  Wholesaler. 

Does  not  believe  has  bad  effect  on  either  producers  or  consumers. 
Jobber  can  not  be  expected  to  carry  stock  in  advance  of  sale  at  own 
liability  against  decline. 

Samuel  Mahon  Co.,  Ottumwa,  Iowa.  Wholesalers. 

Enables  wholesale  dealers  to  render  efficient  service.  Inclination 
to  get  greatest  turnover  of  capital,  provides  necessary  incentive  to 
keep  goods  moving,  but  without  guarantee  jobbers  would  hold  stocks 
for  higher  prices. 

Malone  &  Hyde,  Memphis,  Tenn.  Wholesalers. 

Permits  jobber  to  operate  on  smaller  margin  and  to  that  extent  is 
benefit  to  consumer, 


16 

The  C.  M.  Miller  Co.,  Cornelia,  Ga.  Wholesalers. 

Beyond  statement  that  guarantee  should  be  given  to  jobbers,  com- 
ment is  not  made. 
Moore-Shenkberg  Grocery  Co.,  Sioux  City,  Iowa.  Wholesalers. 

Interview  had  by  G.  A.  Stephens,  representative,  Federal  Trade 
Commission,  with  Mr.  O.  J.  Moore,  president,  Moore-Shenkberg 
Grocery  Co.,  Sioux  City,  Iowa,  elicited  the  following  opinion:  Even 
under  unlimited  guarantee  does  not  believe  manufacturer  assumes 
unfair  risk.  As  offset  to  service  thus  rendered  to  jobber,  the  jobber 
provides  storage  facilities  for  manufacturer's  goods  in  advance  of 
demand.  Believes  that  removal  of  guarantee  would  restrict  volume 
of  business. 
A.  P.  Moore's  Sons  (Inc.),  Tyler,  Tex.  Wholesalers. 

Jobber  operates  on  small  margin  of  profit  and  ought  not  be  ex- 
pected to  assume  liability  against  decline  as  applied  to  goods  he  is 
actually  carrying  for  manufacturer.  Manufacturers  familiar  with 
market  conditions  and  ought  to  be  able  to  make  reasonably  accurate 
cost  and  price  calculations.    Practice  does  not  result  in  higher  prices. 

William  D.  Mullen  Co.,  Wilmington,  Del.  Wholesalers. 

Scarcity  of  milk  at  certain  seasons  and  uncertainty  of  delivery  due 
to  inadequate  transportation  facilities  have  compelled  jobbers  to 
order  large  stock  in  advance  of  need,  but  practice  does  not  encourage 
them  to  carry  excessive  stocks.  Believes  that  the  existence  of  stocks 
larger  than  normal  would  tend  to  keep  prices  from  fluctuating. 
Guarantee  especially  needed  during  these  abnormal  times. 

National  Grocery  Co.,  Seattle,  Wash.  Jobbers. 

Practice  chiefly  applies  to  proprietary  or  much-advertised  brands 
of  foods,  which  assures  adequate  stock  in  hands  of  distributors,  on 
which  the  distributor  and  the  retailer  make  smallest  profit,  a  profit 
established  by  the  manufacturer  or  by  keen  competition.  Retailers 
usually  operate  with  limited  capital  and  the  obligation  is  imposed 
upon  jobber  to  keep  sufficient  stock  for  quick  demand,  entitling  him 
to  guarantee  against  decline  in  price.  Distance  of  jobbing  centers 
from  manufacturing  regions  additional  reason  for  distributors  carry- 
ing heavy  stocks.  Guarantee  prevents  losses  otherwise  occurring  in 
wholesale  jobbers'  trade.  Does  not  believe  practice  operates  to  dis- 
advantage of  small  manufacturer. 

Oklahoma  Wholesale  Grocers'  Association,  Trade  Association. 

Oklahoma  City,  Okla. 

Majority  Oklahoma  grocers  favor  guarantee,  believe  that  it  bene- 
fits consumers,  enables  jobbers  to  buy  in  larger  quantities,  thus  secur- 
ing lower  freight  rate,  and  makes  it  possible  for  jobber  to  distribute 


17 

on  smaller  margin  of  profit.  Practice  chiefly  followed  by  manufac- 
turers of  proprietary  articles,  which  permits  manufacturer  to  oper- 
ate plant  full  time;  for  which  assurance  manufacturer  willing  to 
guarantee  such  protection  to  jobber.  Guarantee  is  also  means  by 
which  new  article  may  find  a  place  in  the  market. 

L.  Patterson  Mercantile  Co.,  Mankato,  Minn.  Wholesalers. 

As  affecting  consumer  believes  guarantee  more  advantageous  than 
disadvantageous.  When  jobber  is  guaranteed  against  decline  there 
is  no  incentive  to  sell  at  higher  prices.  Besides,  under  keen  competi- 
tive conditions,  the  refusal  of  one  jobber  to  raise  prices  will  deter 
others  from  doing  so,  and  the  same  uniformity  of  action  may  be 
looked  for  if  one  jobber  lowers  prices.  Enables  jobber  to  carry  suffi- 
cient stock,  makes  for  better  service  to  the  public  and,  in  our  opin- 
ion, is  objected  to  by  manufacturers  who  desire  loss  to  fall  on  job- 
ber, retailer,  and  consumer. 

A.  H.  Perfect  &  Co,  Fort  Wayne,  Ind.  Wholesalers. 

When  taking  jobbers'  orders  manufacturers  calculate  cost  of  raw 
material  and  ought  to  be  in  a  position  to  safely  estimate  guarantee. 
If  stock  were  retained  in  possession  of  manufacturer  loss  through 
decline  in  prices  would  have  to  be  taken  by  him.  Do  not  believe 
such  practice  encourages  excessive  buying  with  speculative  intent. 
Expense  of  guarantee  would  not  be  more  than  shrinkage  in  value  if 
stock  were  held  by  manufacturers.  Enables  jobbers,  through  large 
purchases,  to  lower  unit  cost  of  goods  and  transportation. 

Powell-Sanders  Co.,  Spokane,  Wash.  Wholesalers. 

Stabilizes  market  by  encouraging  buying  at  times  when  demand 
is  slow  and  makes  available  adequate  stocks  for  consuming  public. 
Gives  manufacturer  ready  use  of  money  and  exempts  him  from  pay- 
ment of  storage  charges  or  expense.  Transfer  of  goods  from  manu- 
facturer to  jobber  in  advance  of  season  would  not  justify  liability 
for  decline. 
J.  M.  Radford  Grocery  Co.,  Abilene,  Tex.  Jobbers. 

Enables  small  retailers  to  carry  adequate  stocks.     When  decline 
occurs  in  primary  market,  benefit  passes  to  consumer,  although  some- 
times on  advancing  markets  full  increase  is  not  charged  consumer. 
Rapides  Grocery  Co.  (Inc),  Alexandria,  La.  Jobbers. 

Practice  has  long  been  in  use  in  grocery  trade  and  do  not  believe 
it  wise  to  discontinue. 

M.  E.  Reeve,  Peoria,  111.  Wholesaler. 

Interview  had  by  G.  A.  Stephens,  representative,  Federal  Trade 
Commission,  with  Mr.  M.  E.  Reeve,  of  Peoria,  111.,  elicited  the  fol- 
11403— 20 3 


18 

lowing  opinion:  Believe  in  limited  guarantee  which  would  work 
equitably  for  all  parties  concerned,  such  limited  guarantee  applying 
only  to  unsold  parts  of  grocer's  stocks  and  not  to  undelivered  por- 
tions. Does  not  believe  that  it  would  encourage  overbuying  and 
speculative  element  would  be  eliminated.  Manufacturers  have  more 
completed  knowledge  of  market  conditions  and  better  able  to  assume 
liabilities. 

Ridenour-Baker  Grocery  Co.,  Kansas  City,  Mo.  Jobbers. 

A  selling  device  of  doubtful  efficiency,  but  a  matter  for  deter- 
mination by  each  individual  seller.  When  price  decline  takes  place 
in  preliminary  market,  manufacturer  notifies  the  jobber,  who  im- 
mediately makes  reduction  to  retailer  and  latter  gives  benefit  to  con- 
sumer, which  practice  does  not  prevent  the  functioning  of  the  law  of 
supply  and  demand.  At  one  time  custom  did  result  in  overbuying, 
but  caused  no  injury  to  public. 

J.  H.  Riggs,  Peoria,  111.  Wholesaler. 

Interview  had  by  G.  A.  Stephens,  representative  Federal  Trade 
Commission,  with  Mr.  J.  H.  Riggs,  of  Peoria,  111.,  elicited  the  fol- 
lowing opinion:  Believe  in  limited  guarantee  which  would  work 
equitably  for  all  parties  concerned,  such  limited  guarantee  applying 
only  to  unsold  parts  of  grocer's  stocks  and  not  to  undelivered  por- 
tions. Does  not  believe  that  it  would  encourage  overbuying  and 
speculative  element  would  be  eliminated.  Manufacturers  have  more 
complete  knowledge  of  market  conditions  and  better  able  to  assume 
liabilities. 

J.  W.  Rowe  Co,  Hampton,  Va.  Wholesalers. 

Declines  in  primary  market  are  passed  on  through  various  stages 
of  trade  to  consumer.  Do  not  believe  practice  hurtful  to  interests 
of  public. 

Sales  Extension  Co.,  Indianapolis,  Ind.  Wholesalers. 

Practice  not  unfair.  Aids  small  jobber,  who  otherwise  would  be 
unable  to  compete  with  the  jobber  of  large  capital.  Retailer  imme- 
diately gets  benefit  from  decline. 

Saunders'  Sons  Co.,  Richmond,  Va.  Wholesalers. 

Guarantee  against  decline  enables  jobbers  to  buy  in  car  lots  at 
lower  unit  cost  for  goods  and  transportation  and  provides  consumer 
with  ready  supply  from  which  to  draw.  Packers'  reductions  are 
immeditely  made  effective  for  benefit  of  retailer. 

Sentney  Wholesale  Grocery  Co.,  Hutchinson,  Kans.  Jobbers. 

Margin  of  profit  on  list  goods  so  small  that  jobber  will  not  handle 

without  guarantee.    Where  guarantee  accorded,  jobbers  buy  with  the 


19 

object  of  securing  best  unit  prices  and  carload  freight  rate,  enabling 
them  to  handle  with  small  profit.  Since  guarantee  withdrawn  from 
soap  and  lard  small  purchases  are  made,  with  resultant  increase  in 
unit  cost.  Besides  dealers  not  being  protected  hold  stocks  for  higher 
prices.  au 

Southern  Georgia  Grocery  Co.,  Quitman,  Ga.  Jobbers. 

Unless  guarantee  given,  wholesale  grocers  would  be  compelled  to 
increase  profit  to  offset  additional  hazard  involved. 
Straud-Dockum  Grocery  Co.,  Corsicana,  Tex.  Wholesalers. 

Enables  manufacturer  to  make  better  and  more  economic  distri- 
bution. 
E.  S.  Street  &  Co.,  Dublin,  Ga.  Wholesalers. 

All  stages  of  business  are  benefited  by  this  practice,  which  tends  to 
reduce  the  cost  of  living  and  to  stabilize  prices. 

Tidewater  Wholesale  Grocers'  Association,  Norfolk,  Va.         Trade  Association. 

With  present  small  margin  of  profit  jobber  would  be  unable  to 
carry  adequate  stock  unless  given  guarantee.  Guarantee  encourages 
larger  purchases  which  result  in  lower  unit  cost.  Such  practice  does 
not  tend  to  maintain  prices. 

Tucker  &  Goodwin,  Hartford,  Conn.  Wholesalers. 

Guarantee  permits  jobber  to  purchase  larger  stocks  at  lower  unit 
cost  and  thereby  take  better  care  of  the  trade.  Declines  in  primary 
markets  are  automatically  and  promptly  passed  to  consumer.  If 
guarantee  withdrawn,  jobbers  obliged  to  increase  margin  of  profit 
to  offset  additional  hazard. 

Tyleri  Grocery  Co.,  Birmingham,  Ala.  Jobbers. 

Practice  might  lead  to  overbuying  if  not  checked  by  manufac- 
turer, who  ought  to  know  something  of  jobbers'  needs.  Guarantee 
enables  jobber  to  operate  on  closer  margin. 

Tyler  &  Simpson  Co.,  Gainesville,  Tex.  Wholesalers. 

Does  not  encourage  overstocking  but  does  provide  adequate  stock, 
obtained  at  lowest  unit  cost  and  transportation  at  lower  cost  than 
for  smaller  shipments. 

Ullmann,  Stern  &  Krausse,  San  Antonio,  Tex.  Wholesalers. 

Guarantee  against  decline  does  not  tend  to  maintenance  of  prices, 

as  all  declines  in  primary  markets  are  promptly  passed  to  consumer. 

Wash,  Davie  &  Co.,  New  Orleans,  La.  Wholesalers. 

Protests  against  discontinuance  of  custom.  Contends  that  no 
jobber,  through  guarantee,  is  given  unfair  advantage  over  com- 
petitor, as  competition  regulates  all  differences  in  price.     Believes 


20 

that  inadequate  stocks  will  be  carried  by  jobbers  if  privilege  with- 
drawn. 

The  Wiles  Grocery  Co.,  Zanesville,  Ohio.  Jobbers. 

Cites  canned  milk  as  illustrating  benefit  of  guarantee.    States  that 

packers  declines  are  immediately  given  to  consumer  through  retailers. 

Guarantee  enables  jobbers  to  carry  sufficient  stock  to  meet  demand. 

HARDWARE. 

Ainslie-Martin  Co.  (Inc.),  Lynchburg,  Va.  Jobbers. 

If  guarantee  not  accorded,  unable  to  anticipate  wants  and  order 
for  future  shipment. 

Albany  Hardware  &  Iron  Co.,  Albany,  N.  Y.  Jobbers. 

Emphatically  favor  plan,  especially  in  days  of  underproduction, 
when  merchant  is  forced  to  order  6  to  12  months  in  advance,  to 
preserve  business,  running  risk  of  depreciation  from  big  prices  at 
time  consignment  is  received.  Few  of  us  believe  in  overtaxing  either 
our  credit  or  warehouses,  but  are  obliged  to  have  goods  if  we  are  to 
hold  trade;  therefore,  protection  given  by  guarantee  removes  large 
element  of  risk.  If  manufacturers  lower  costs,  prices  fall  and  mer- 
chant gets  guarantee  for  unshipped  portion  contract.  Fear  of  de- 
cline deterred  merchants  from  keeping  stocks  normal.  As  a  con- 
sequence became  stripped  of  goods  and  prices  were  bid  up  by  con- 
sumers. 

Allen  &  Jemison  Co.,  Tuscaloosa,  Ala.  Jobbers. 

Feel  practice  essentially  necessary  on  seasonal  goods  bought  long 
in  advance  of  season.  Would  be  very  hazardous  to  purchase  with- 
out guarantee.  Do  not  believe  jobbers  would  carry  sufficient  stock 
unless  guaranteed  against  decline. 

Anniston  Hardware  Co.,  Anniston,  Ala.  ■  Jobbers. 

As  jobbers  can  not  buy  full  requirements  in  some  lines,  believe 
business  of  country  would  be  hindered  if  guarantee  were  withdrawn. 

Baker  &  MacDowell  Hardware  Co.,  Natchez,  Miss.  Jobbers. 

Practice  has  been  of  inestimable  value  to  jobbers  past  two  years. 
Do  not  consider  that  manufacturer  who  does  not  resort  to  practice  is 
at  disadvantage  with  manufacturer  who  extends  privilege. 

A.  Baldwin  &  Co.,  New  Orleans,  La.  Jobbers. 

Believes  practice  concerns  only  manufacturer,  and  if  he  is  willing 
to  give  guarantee,  in  order  to  move  his  product  freely,  feels  he 
should  be  allowed  to  do  so,  as  the  custom  stimulates  business  and 
removes  fear. 


21 

Barker,  Rose  &  Clinton  Co.,  Elmira,  N.  Y.  Jobbers. 

Does  not  believe  any  more  unfair  to  guarantee  prices  to  date  of 
shipment  than  at  date  of  order. 
The  Bronson  &  Townsend  Co.,  New  Haven,  Conn.  Jobbers. 

Guarantee  permits  jobbers  to   operate   with  smaller  margin  of 
profit. 
Brown-Rogers  Co.,  Winston-Salem,  N.  C.  Jobbers. 

Practice  stabilizes  market  and  makes  it  possible  for  jobbers  to  buy 
goods  sufficiently  in  advance  of  season  to  have  supply  ready  when 
demand  is  made. 
Chapman  &  Bangs  Co.,  Bridgeport,  Conn.  Jobbers. 

Articles  such  as  tool  steel  sold  by  jobber  on  such  narrow  margin 
that  slightest  decline  inflicts  heavy  loss.  Does  not  believe  that  grant- 
ing of  concession  by  one  manufacturer  operates  to  disadvantage  of 
another  manufacturer.  Believes  manufacturer  should  restrict  obli- 
gation to  specific  proportion  of  orders  placed,  to  obviate  speculation 
on  part  of  jobber.  Expresses  belief  that  such  practice  does  not 
deter  manufacturers  from  putting  reductions  into  effect. 

Charlotte  Hardware  Co.,  Charlotte,  N.  C.  Jobbers. 

On  specified  amount  of  goods  bought  in  advance  of  season  abso- 
lutely essential  for  manufacturer  to  give  guaranty.  Otherwise  can 
not  buy  for  future  delivery.  Enables  jobbers  to  assure  prices  to 
retailers. 

Corpus  Christi  Hardware  Co.,  Corpus  Christi,  Tex.  Jobbers. 

In  order  to  calculate  prices  at  which  goods  are  to  be  sold  jobbers 
must  rely  upon  guarantee  from  manufacturers. 

Crancer  Hardware  Co.,  Leavenwoth,  Kans.  Jobbers. 

Believes  would  be  mistake  to  stop  practice,  as  it  serves  to  stabilize 
market. 

Crumley-Sharp  Hardware  Co.,  Atlanta,  Ga.  Jobbers. 

Under  present  conditions,  do  not  see  how  business  could  be  intel- 
ligently or  safely  conducted  without  guarantee. 

A.  Deutz  &  Bro.,  Laredo,  Tex.  Jobbers. 

Believes  practice  to  best  interest  of  public,  especially  at  this  time,, 
when  materials  are  scarce  and  freight  transportation  congested. 

Dinkins-Davidson  Hardware  Co.,  Atlanta,  Ga.  Jobbers. 

Enables  manufacturers  to  estimate  needs,  operate  plant  more 
evenly,  and  place  in  jobbers'  hands  adequate  stocks  to  take  care  of 
trade.  Do  not  believe  jobbers  would  be  disposed  to  buy  under  other 
circumstances. 


22 

Doherty  Hardware  Co.  (Ltd.) ,  Baton  Rouge,  La.  Jobbers. 

Practice  makes  it  possible  for  factories  to  better  plan  their  opera- 
tions, gives  jobbers  advance  knowledge  of  prices,  and  enables  re- 
tailer to  place  order  with  jobber  and  be  assured  of  getting  goods 
on  time. 

Griffin-Cantrell  Hardware  Co.,  Rome,  Ga.  Jobbers. 

If  guarantee  extends,  permits  jobbers  to  go  to  retailers  with 
sufficient  advance  knowledge  of  prices  to  fix  profit  and  move  intel- 
ligently. 

Griffin  Manufacturing  Co.,  Erie,  Pa.  Manufacturers. 

As  manufacturer,  does  not  particularly  care  for  system,  but  sees 
no  objection  and  does  not  believe  that  it  operates  to  disadvantage 
of  manufacturer  or  jobber. 

Harper  &  Mclntire  Co.,  Ottumwa,  Iowa.  Jobbers. 

Practice  began  in  hardware  trade  about  two  years  ago.  The  fol- 
lowing illustration  for  need  of  such  guaranty  is  cited : 

In  January  jobbers  usually  purchase  gun  shells  from  manufac- 
turers for  shipment  about  April  1,  which  are  delivered  by  jobbers 
to  retailers  subsequent  to  July  1,  subject  to  October  1  dating.  If 
guarantee  not  given  jobber  could  not  purchase  that  far  in  advance 
and  take  chances  on  decline  in  price.  Do  not  believe  practice  operates 
to  disadvantage  of  anyone.  It  establishes  confidence  and  enables 
jobbers  to  carry  adequate  stock. 

Huey  &  Phiup  Hardware  Co.,  Dallas,  Tex.  Jobbers. 

Were  it  possible  to  receive  goods  one  week  or  so  after  order  had 
been  placed  necessity  for  guarantee  would  be  eliminated,  but  under 
present  conditions  guaranty  is  necessary. 

Interstate  Hardware  &  Supply  Co.,  Bristol,  Tenn.  Jobbers. 

Believe  manufacturer  should  give  such  guarantee  to  jobber  and 
jobber  extend  privilege  to  retailer,  permitting  more  intelligent  pur- 
chasing. Absence  of  guarantee  discourages  dealers  from  making 
adequate  purchases,  and  when  decline  occurs  compels  them  to  resist 
reduction.  Actual  practice  demonstrates  that  reductions  made  by 
manufacturers  are  promptly  passed  to  consumers.  Removes  uncer- 
tainty from  business. 

Keith,  Simmons  &  Co.,  Nashville,  Tenn.  Jobbers. 

Guarantee  provides  more  even  factory  operation  and  will  not  result 
in  speculation  to  any  great  extent,  but  does  insure  adequate  stocks  in 
hands  of  jobbers.  Insufficient  stocks  would  operate  against  proper 
conduct  of  business.  Manufacturers  able  to  calculate  expense  of  such 
concession  and  therefore  not  apt  to  suffer  loss. 


23 

Knapp  &  Spencer,  Sioux  City,  Iowa.  Jobbers. 

Approves  guarantee  against  decline  to  date  of  shipment.  One- 
third  to  one-half  of  year's  business  sold  three  to  six  months  ahead  of 
season  and  must  assure  retailers  that  price  will  stand,  which  unable 
to  do  unless  jobbers  accord  guarantee  by  manufacturers.  Does  not 
believe  practice  gives  one  manufacturer  advantage  over  another. 

Krakauer,  Zork  &  Moye's  Successors  (Inc.),  El  Paso,  Tex.  Jobbers. 

Believes  jobbers  ought  to  be  permitted  to  contract  for  adequate 
stock  in  advance  of  time  needed  with  assurance  of  guarantee  against 
decline ;  otherwise  would  not  be  able  to  do  so. 

The  Lee  Hardware  Co.  (Ltd.),  Shreveport,  La.  Jobbers. 

Believe  guarantee  only  method  for  stabilizing  market  and  do  not 
regard  as  an  unfair  practice. 

Lewis  Mill  Supply  Co.,  Helena,  Ark.  Jobbers. 

Believe  manufacturer  should  give  jobbers  60  to  90  days'  notice  of 
decline  in  order  to  give  the  latter  time  to  dispose  of  stock  without 
loss.     Such  practice  would  not  compel  jobbers  to  buy  meagerly. 

C.  M.  McClung  Co.,  Knoxville,  Tenn.  Jobbers. 

Believe  wholesale  dealer  entitled  to  this  measure  of  protection 
against  decline  in  view  of  heavy  stocks  carried. 

McLenden  Hardware  Co.,  Waco,  Tex.  Jobbers. 

Believe  guarantee  should  be  given  on  seasonal  goods,  especially  in 
view  of  time  taken  to  make  deliveries  after  orders  are  entered. 

Monroe  Hardware  Co.,  Monroe,  La.  Jobbers. 

Jobbers  usually  a  long  distance  from  the  manufacturers  and  are 
obliged  to  buy  seasonal  goods  much  in  advance  of  selling  season 
and  ought  to  be  accorded  guarantee.  Manufacturer  should  be  able 
to  grant  such  concessions  in  view  of  the  fact  that  he  knows  his  raw 
material  and  labor  markets. 

J.  W.  Murchison  &  Co.,  Wilmington,  N.  C.  Jobbers. 

Would  not  be  willing  to  purchase  some  articles,  in  large  quantities 
and  in  advance  of  season,  unless  accorded  guaranty. 

Nixon  Hardware  Co.,  Rome,  6a.  Jobbers. 

Jobbers  unable  to  give  price  assurance  to  retailers  unless  accorded 
guarantee  by  manufacturers. 

Norton  Hardware  Co.,  Norton,  Va.  Jobbers. 

Many  articles  sold  by  hardware  jobbers  are  purchased  and  de- 
livered to  them  long  in  advance  of  their  selling  season  and  retailers 
will  not  place  orders  unless  prices  may  be  definitely  given  them. 


24 

Odell  Hardware  Co.,  Greensboro,  N.  C.  Jobbers. 

Guarantee  provides  better  factory  operation  and  more  even  flow 
of  goods  to  jobber.  Manufacturer  required  to  have  jobbers'  orders 
in  hand  6  to  10  months  in  advance  of  retail  demand  and  jobber  will 
not  assemble  large  stocks  at  his  liability.  Permits  manufacturer  to 
produce  and  ship  in  sufficient  time,  serves  interest  of  jobber  to  have 
ready  supply  and  makes  for  prompt  delivery  to  retailer  upon  de- 
mand. Unless  practice  permitted,  would  demoralize  trade  as  now 
conducted  and  be  distinct  advantage  to  mail-order  houses. 
Penick-Hughes  Co.,  Stamford,  Tex.  Jobbers. 

To  assure  jobbers  adequate  stocks  necessary  for  them  to  make 
purchases  months  in  advance  of  call  upon  them.  Without  guar- 
antee few  jobbers  could  make  proper  provision  for  trade.  The  prac- 
tice stabilizes  prices,  enables  manufacturers  to  ascertain  the  kinds 
and  styles  of  goods  desired,  and  prevents  profiteering. 
W.  H.  Richardson  &  Co.,  Austin,  Tex.  Jobbers. 

Would  be  suicidal  for  jobbers  to  attempt  to  carry  adequate  stocks 
without  guarantee.  This  policy  enables  manufacturers  to  make 
even  distribution  of  output  in  advance  of  time  needed  by  consum- 
ing market.  If  manufacturers  were  obliged  to  concentrate  ship- 
ments in  short  period  of  time  freight  congestion  would  result. 

Roanoke  Hardware  Co.  (Inc.),  Roanoke,  Va.  Jobbers. 

Regards  as  important  that  manufacturers  in  certain  lines  give 
guarantee  to  cover  period  required  for  jobbers  to  dispose  of  goods, 
otherwise  declines  would  result  in  great  loss  to  jobbers. 

Russell  Hardware  Co.,  McAlester,  Okla.  Jobbers. 

A  question  to  be  determined  by  seller.  Jobbers  will  not  buy 
seasonal  goods  in  advance  unless  so  protected.  Permits  manufac- 
turers to  dispose  of  output  by  steady  flow  of  jobbers.  Manufacturers 
in  closer  touch  with  general  trade  conditions  and  able  to  more  intel- 
ligently set  future  prices. 

Sterling  Hardware  Co.,  Bluefield,  W.  Va.  Jobbers. 

Does  not  regard  as  unfair  method  of  competition  and  practice  not 
calculated  to  encourage  overbuying.  Jobber  not  financially  able  to 
assume  liability  of  advance  for  goods  purchased  prior  to  need. 

W.  M.  Tatum  Hardware  Co.,  Corsicana,  Tex.  Jobbers. 

Without  guarantee  could  not  provide  for  future  business,  espe- 
cially as  regards  seasonal  goods. 

Thompson-Miller  Hardware  Co.,  Charleston,  S.  C.  Jobbers. 

Unless  guarantee  given  would  be  difficult  for  jobbers  to  buy  in 
adequate  quantities  and  in  advance  of  season's  needs.  Practice  may 
encourage  overbuying  to  some  extent  but  not  enough  to  offset  advan- 
tages of  system. 


The  Walter  Tips  Co.,  Austin,  Tex.  Jobbers. 

Jobbers  are  obliged  to  purchase  goods,  usually  from  long  distances, 
much  in  advance  of  demand  upon  them  and  ought  to  be  given  guar- 
antee so  they  and  retailers  may  be  able  to  estimate  prices  for  the 
following  season. 
Townley  Metal  &  Hardware  Co.,  Kansas  City,*Mo.  Jobbers. 

Regards  as  economical  expedient  looking  to  proper  distribution  of 
goods  and  absolutely  necessary  on  seasonal  goods,  to  encourage  job- 
bers to  buy  and  store  in  advance  of  demand.  Makes  for  more  even 
distribution  of  transportation  burden. 

Tullis-Gamble  Hardware  Co,  Montgomery,  Ala.  Jobbers. 

Unless  guarantee  given  jobbers  will  be  obliged  to  buy  from  month' 
to  month  or  would  be  forced  to  gamble  on  an  uncertain  market. 
Placing  orders  at  prices  ruling  on  dates  of  shipment  puts  jobbers 
at  mercy  of  manufacturers.    Jobbers'  margin  of  profit  very  small  on 
staple  lines. 
The  Wagner  Hardware  Co.,  Mansfield,  Ohio.  Jobbers. 

Of  decided  advantage  to  dealer  and  consumer  to  have  prices  guar- 
anteed. When  we  are  apprehensive  that  market  is  tending  upward 
urge  retailer  to  buy  on  future  dating  at  market  price  date  of  order. 
Declines  in  price  are  covered  by  telegraphic  notice  to  salesmen  and 
have  reason  to  believe  that  other  jobbers  follow  same  practice. 

Watkins-Cottrell  Co.,  Richmond,  Va.  Jobbers. 

Regard  as  entirely  fair  practice  whereby  manufacturer  gives  to 
jobber  guarantee  for  certain  period. 
J.  D.  Weed  &  Co.,  Savannah,  Ga.  Jobbers. 

Essential  that  manufacturer  guarantee  certain  commodities  sold 
for  future  shipment.    Otherwise  jobbers  unable  to  take  care  of  trade. 

E.  L.  Wilson  Hardware  Co.,  Beaumont,  Tex.  Jobbers. 

Believes  that  certain  staple  lines  and  seasonal  goods  should  be 
subject  to  guarantee. 

Wimberly  &  Thomas  Hardware  Co.,  Birmingham,  Ala.  Jobbers. 

Guarantee  against  price  decline  enables  jobbers  to  buy  seasonal 
needs  in  adequate  quantities  and  in  sufficient  time  to  meet  demand, 
which  would  not  be  done  unless  afforded  protection.  Nonseasonal 
goods  purchased  by  us  are  bought  subject  to  price  at  date  of  shipment 
and  constitute  about  90  per  cent  of  our  business. 

ICE. 

Mountain  Grove  Creamery,  Ice  &  Manufacturing  Co.,  Manufacturers. 

Mountain  Grove,  Mo. 

Expresses  need  for  stabilization  of  some  sort  to  protect  future 
market  and  avoid  losses. 
11403—20 4 


26 

IRON  AND  STEEL. 

Advance-Rumely  Co.,  Chicago,  111.  Manufacturers. 

Practice  long  tried  successfully  among  manufacturers  steel  bars, 
plates,  etc.,  and  has  been  beneficial  to  steel  manufacturer  and  to  pur- 
chasing manufacturer.  It  permits  fabricator  to  plan  beforehand 
without  handicap  of  uncertainty  as  to  price  at  time  of  delivery.  Any 
different  rule  would,  in  time  of  serious  price  fluctuation,  require  fabri- 
cator to  practice  hand-to-mouth  policy,  thus  hindering  production. 
In  recent  years  agricultural  machinery  companies  adopted  similar 
policy.  Prices  were  high  during  and  at  close  of  the  war  and  dealers 
hoped  prices  would  decline.  Manufacturer  believed  this  was  hazard 
•he  should  assume  and  give  the  dealer  guarantee  applied  to  com- 
modities contracted  for  but  not  delivered,  thereby  enabling  the  manu- 
facturer to  go  ahead.    Believes  practice  should  be  encouraged. 

Brown- Wales  Co.,  Boston,  Mass.  Jobbers. 

Approves  custom  because  encourages  jobbers  to  carry  normal  stock 
and  evenly  distributes  demand  upon  manufacturer. 

Columbia  Tool  Steel  Co.,  Chicago  Heights,  111.         Manufacturers  and  Retailers. 

Has  never  accorded  guarantee  to  great  extent,  but  where  long- 
time sales  of  definite  quantities  have  been  sold,  has  executed  contracts 
with  this  provision.  Believes  that  proposition  is  one  sided,  but  recog- 
nizes virtue  in  aiding  dealers  to  anticipate  requirements  and  thus 
stabilize  prices.  Do  not  believe  generally  practiced  in  their  trade. 
Illinois  Wire  &  Manufacturing  Co.,  Joliet,  111.  Manufacturers. 

Believes  matter  not  one  of  public  interest,  but  solely  concerns 
manufacturers  and  their  customers.    No  further  comment. 
French  &  Hecht,  Springfield,  Ohio.  Manufacturers. 

Does  not  believe  guarantee  violates  any  sound  business  principle 
or  works  hardship  against  any  one  as  applied  to  unshipped  portion 
of  contracts.    Custom  facilitates  better  factory  operation. 
Goodell-Pratt  Co.,  Greenfield,  Mass.  Tool  Manufacturers. 

Grants  guarantee  only  to  date  of  shipment.  For  past  three  years 
obliged  to  sell  at  price  prevailing  at  date  of  shipment. 

Havana  Metal  Wheel  Co.,  Havana,  111.  Manufacturers. 

Receives  and  dispenses  guarantee  privilege.  Guarantee  given  by  it 
relates  only  to  unshipped  goods.  Disapproves  of  guarantee  on  goods 
shipped  unless  shipped  on  consignment.  Do  not  believe  custom  de- 
moralizes trade,  but  permits  jobber  to  meet  competition  when  price 
decline  sets  in. 

Martin  Steel  Products  Co.,  Mansfield,  Ohio.  Manufacturers. 

Practice  results  in  more  even  factory  operation  and  provides  for 
better  distribution  of  output  from  manufacturer  to  jobber. 


27 

New  England  Chain  Works,  Boston,  Mass.  Manufacturers. 

Manufacturer  gives  guarantee  to  assure  better  plant  operation  and 
not  injurious  to  public  interests.  Does  not  operate  against  small 
competitor  or  one  who  does  not  give  guarantee,  unnecessarily  in- 
crease jobber's  stocks,  or  encourage  manufacturer  to  keep  up  prices. 

Niles  &  Scott  Co.,  La  Porte,  Ind.  Manufacturers. 

Executes  contracts  which  give  a  guarantee  against  decline  as  ap- 
plied to  undelivered  portion  of  raw  materials.  Would  be  hardship  to 
operate  without  such  guarantee  and  are  in  favor  of  practice  being 
continued. 

St.  Louis  Iron  Store  Co.,  St.  Louis,  Mo.  Jobbers. 

Have  operated  under  such  guarantee  from  manufacturer,  but  never 
encouraged  to  overbuy.     Prevents  manufacturer  from  seeking  to 
overload  jobber. 
J.  R.  Stone  Tool  &  Supply  Co.,  Detroit,  Mich.  Jobbers. 

Does  not  regard  as  unfair  or  that  it  encourages  overbuying. 
Western  Steel  &  Iron  Works,  De  Pere,  Wis.  Manufacturers. 

Expresses  judgment  that  guarantee  against  price  decline,  under 
certain  conditions,  to  date  of  shipment  should  be  accorded,  but  does 
not  indicate  whether  this  should  apply  to  its  purchases  or  its  sales. 

LIGHTING  EQUIPMENT. 

Benjamin  Electric  Manufacturing  Co.,  Chicago,  111.  Manufacturers. 

Approves  practice  and  expresses  belief  that  any  manufacturer 
with  sufficient  foresight  to  provide  raw  material  and  have  labor 
situation  in  hand  ought  to  be  permitted  to  offer  such  guarantee  on 
goods  subject  to  future  delivery,  up  to  the  date  of  delivery,  but 
does  not  believe  that  such  privilege  should  extend  to  include  goods 
on  shelves.  Believes  latter  an  abuse  and  should  be  regulated,  as  it 
imposes  a  hardship  on  weaker  merchants  and  is  to  the  advantage 
of  financially  stronger  ones. 
Babcock,  Hinds  &  Underwood  (Inc.),  Binghamton,  N.  Y.  Jobbers. 

At  present  jobbers  ought  to  have  price  guarantee  on  account  slow 
deliveries  and  slow  transportation.  Retail  dealers  depend  upon 
jobbers,  requiring  latter  to  carry  larger  stock  than  under  other  cir- 
cumstances. Under  ordinary  circumstances  jobbers'  stocks  can  be  re- 
plenished in  a  few  days.  If  guarantee  not  permitted,  large  capital 
will  be  required  for  jobbers'  stocks  and  losses  taken  when  market 
declines. 

LUMBER. 

Estes  Lumber  Co.,  Birmingham,  Ala.  Wholesalers. 

Guarantee  would  stabilize  market  and  protect  jobbers  and  con- 
sumers. 


28 

Gloster  Lumber  Co.,  Gloster,  Miss.  Manufacturers. 

Believe  in  times  like  present  would  stabilize  market. 
The  Allied  Machinery  Co.  of  America,  New  York,  N.  Y.  Jobbing  Exporters. 

Have  never  received  payments  of  this  character  but  believe  firmly 
in  practice  as  one  calculated  to  promote  export  business  by  lessening 
risk  exporter  is  obliged  to  assume. 

MACHINERY. 

Banks  Supply  Co.,  Huntington,  W.  Va.  Jobbers. 

Stabilizes  markets  and  encourages  large  buying,  in  addition  to 

exciting  confidence  and  enabling  manufacturers  to  do  business  in 
larger  units  of  sales. 

Harron,  Rickard  &  McCone,  San  Francisco,  Ca'if.  Jobbers. 

During  present  high  price  period  deflation  in  currency  restricts 
volume  of  purchases,  and  if  guarantee  were  not  granted  could  not 
carry  usual  sized  stock.    Does  not  see  any  objection  to  such  practice. 

A.  M.  Lockett  &  Co.,  New  Orleans,  La.  Jobbers. 

Under  guarantee  jobbers  do  not  speculate  on  price  changes  but  are 
encouraged  to  cany  adequate  stocks.  We  protect  retailers.  Con- 
sumer is  benefited  by  stabilization  of  market,  being  assured  that  no 
increase  in  price  will  occur  after  he  has  made  a  purchase.  Do  not 
believe  manufacturers  object  to  paying  rebates,  as  refusal  to  do  so 
would  place  them  at  disadvantage  with  competitors  who,  by  reason 
of  declining  prices,  would  get  the  market. 

Queen  City  Supply  Co.,  Cincinnati,  Ohio.  Jobbers. 

Regards  as  good  business  practice  and  does  not  tend  to  maintain 
high  prices. 

Southern  Supply  &  Machinery  Dealers'  Association,  Trade  Association. 

Richmond,  Ya. 

Inquiry  of  members  indicates  that  consensus  of  opinion  supports 

the  practice  of  granting  guarantee  to  date  of  shipment,  but  not  as 

applied  to  unsold  goods. 

Swind  Machinery  Co.,  Philadelphia,  Pa.  Jobbers. 

Permits  prompt  service,  enables  jobber  to  anticipate  needs,  and 
promotes  better  manufacturing  schedule,  the  latter  reducing  the 
unit  cost.  In  our  line  selling  prices  are  fixed  by  the  manufacturer 
and  jobbers  would  be  embarrassed  without  the  guarantee.  Know 
of  no  better  stabilizer  than  this  guarantee. 

MACHINE  TOOLS. 
Purinton  &  Smith,  Hartford,  Conn.  Jobbers. 

Manufacturer's  commission  to  machine  tool  jobbers,  which  ranges 
from  10  per  cent  to  15  per  cent  affords  such  narrow  margin  of  profit 


29 

that  guarantee  against  price  decline  is  necessary.  For  instance,  a 
jobbing  concern  carrying  $100,000  worth  of  machinery,  if  obliged  to 
assume  a  20  per  cent  reduction  in  price,  would  likely  suffer  loss  of 
year's  profits.  Best  plan  would  be  to  give  jobber  credit  for  all  de- 
clines and  charge  against  for  all  increases. 

Cole  Manufacturing  Co.,  Memphis,  Tenn.  Jobbers. 

Except  in  one  or  two  instances  has  never  received  this  privilege. 
However,  is  compelled  to  make  large  purchases  to  which  are  applied 
prevailing  prices  on  date  of  shipment,  with  right  to  cancel  if  price 
not  satisfactory. 

MILL  SUPPLIES. 

Hardwicke-Etter  Co.,  Sherman,  Tex.  Manufacturers. 

Supports  approval  of  guarantee  by  following  illustration: 
Ninety-five  per  cent  of  one  article  handled  by  this  concern  is  sold  in 
July  and  August,  for  which  they  are  obliged  to  place  order  in  early 
part  of  year.  If  dealers  did  not  buy  until  just  before  goods  are 
needed,  manufacturers  would  have  to  bear  loss  resulting  from  price 
decline;  consequently,  the  manufacturer  feels  nothing  additional  is 
lost  by  taking  care  of  price  decline  after  goods  have  passed  out  of  his 
hands.    Practice  stabilizes  market,  but  does  not  result  in  high  prices. 

OIL— EDIBLE. 

E.  T.  Bedford,  New  York  City,  N.  Y.  Manufacturer. 

All  reductions  in  price  pass  to  consumer  as  soon  as  drop  occurs  in 
primary  market.  Does  not  operate  to  disadvantage  of  middlemen  in 
this  line  since  they  are  largely  engaged  in  putting  up  private  brands, 
while  we  manufacture  for  the  trade  generally  and,  so  far  as  possible, 
try  to  maintain  a  uniform  average  price.  Encourages  more  liberal 
purchases  and  thus  enables  manufacturer  to  operate  more  con- 
tinuously and  economically. 

OVERALLS. 

Crown  Overall  Manufacturing  Co.,  Cincinnati,  Ohio.  Manufacturers. 

While  practice  is  regarded  as  a  necessary  evil,  would  like  to  see 
custom  eliminated.  Chief  object,  inducement  to  merchants  to  place 
orders  ahead.  Prevents  "  bunching  "  of  orders  and  keeps  plant  in 
operation  the  year  round.  Guarantee  is  only  extended  to  date  of 
shipment.  While  it  is  true  that  practice  is  chiefly  for  benefit  of  mer- 
chants, in  no  other  way  can  they  be  encouraged  to  buy  until  goods 

actually  needed. 

PAINT  AND  VARNISH. 

The  Armstrong  Paint  &  Varnish  Works,  Chicago,  111.  Manufacturers. 

In  our  business  appeals  as  splendid  practice,  and  we  do  it  regularly, 
particularly  in  winter.    Do  not  believe  well-run  manufacturing  es- 


30 

tablishment  can  afford  to  operate  part  time  full  blast  and  balance 
half  time.  In  many  lines  is  positive  benefit  to  purchaser  and  dealer. 
If  can  get  dealer  to  take  goods  dull  months,  can  run  factory  full  time 
and  sell  closer. 

De  Soto  Paint  Manufacturing  Co.,  Memphis,  Tenn.  Manufacturers. 

Practice  absolutely  necessary  in  paint  business  during  certain 
period  of  the  year.  During  first  three  months  of  year  demand  for 
paint  at  minimum,  and  in  order  to  keep  plant  operating  and  stock 
moving  toward  jobbers,  manufacturers  obliged  to  date  sales  April  1, 
subject  to  guarantee.  If  jobbers  not  given  assurance  as  to  future 
prices,  will  not  purchase  until  actually  needed.  As  manufacturers 
in  paint  line  contract  for  raw  materials  at  set  prices,  no  loss  results. 

Louisville  Paint,  Oi!  &  Varnish  Club,  Louisville,  Ky.  Trade  Association. 

By  resolution  above-named  club  expressed  itself  as  follows : 
"  Use  of  paint  confined  to  certain  seasons,  and  unless  guarantee 
permitted  orders  would  be  received  within  too  short  time  to  handle, 
compelling  forced  operation  of  factory  at  one  period  of  the  year, 
and  result  in  partial  idleness  the  balance.  Believe  ought  to  be  re- 
garded as  matter  of  policy  to  be  determined  by  each  concern.  Such 
guarantees  or  contracts  obviate  misunderstandings." 

T.  H.  Nevin  Co.,  Pittsburgh,  Pa.  Manufacturers. 

Dealers  in  seasonal  commodities,  which  must  be  sold  to  jobbers 
long  in  advance  of  resale  to  retailer,  require  extension  of  this  privi- 
lege. Makes  for  more  even  factory  operation  and  better  distribu- 
tion of  shipments. 

Seidlitz  Varnish  Co.,  Kansas  City,  Mo.  Manufacturers. 

Paint  and  varnish  business  of  seasonal  character.  Eaw  materials, 
particularly  those  used  in  varnish,  secured  from  foreign  countries 
and  the  manufacturers  are  compelled  to  contract  for  their  supplies 
six  months  to  one  year  in  advance  of  use,  which  to  some  extent  sta- 
bilizes the  raw  market.  Jobbers  or  agents  will  not  take  goods  in 
advance  of  need  unless  protected  by  guarantee.  Imposes  no  finan- 
cial hardship  on  manufacturer,  especially  since  the  advent  of  the 
trade  acceptance  in  payment  for  goods  delivered  to  jobbers. 

U.  S.  Gutta  Percha  Paint  Co.,  Providence,  R.  I.  Manufacturers. 

Formerly  dispensed  product  through  sales  force,  but  in  recent 
years  has  disposed  of  some  through  jobbers,  on  commission,  guar- 
anteeing unsold  portion  of  stock  against  price  decline,  in  the  belief 
that  such  concession  was  a  fair  exchange  for  capital  invested  in  our 
products  by  jobber.  If  prices  advance,  require  jobbers  to  accept 
increased  billing.  Do  not  believe  practice  operates  to  disadvantage 
of  consumer. 


31 

C.  A.  Woolsey  Paint  &  Color  Co.,  Jersey  City,  N.  J.  Manufacturers. 

To  maintain  reasonably  continuous  factory  operation  obliged  to 
extend  guarantee.  If  jobbers  postponed  purchases  until  just  prior 
to  seasonal  demand,  usual  transportation  facilities  would  not  admit 
of  proper  deliveries.  Elimination  of  guarantee  would  operate  dis- 
advantageous^ to  manufacturer. 

PAPER. 

The  Hamersley  Manufacturing  Co.,  New  York,  N.  Y.  Manufacturers. 

Where  manufacturer  grants  such  concession  he  makes  arrange- 
ment for  his  protection.     Eliminates  all  disputes  following  sales. 

Schmidt  &  Ault  Paper  Co.,  York,  Pa.  Manufacturers. 

Guarantee  insures  manufacturer  maximum  production,  lessens  his 
need  for  warehouse  facilities,  and  gives  labor  steady  employment 
at  uniform  wages.  Have  not  adopted  such  policy,  but  believe  proper 
practice  for  those  who  desire  to  resort  to  it.  Aids  small  manufac- 
turer with  restricted  warehouse  space  to  operate  plant  efficiently. 

Writing  Paper  Manufacturers'  Association,  New  York  City.         Manufacturers. 

Henry  A.  Wise,  attorney  for  the  Writing,  Cover,  Book,  and  Tissue 
Paper  Manufacturers'  Associations,  submitted  printed  brief  dated 
March  15,  1920.     His  argument  has  been  summarized  as  follows: 

■Such  practice  does  not  prevent  all  purchasers  from  securing  same 
privilege,  and  even  though  guarantee  is  extended  by  some  manu- 
facturers and  not  by  others,  it  would  not  result  in  monopoly.  Any 
benefit  accruing  to  part}'  giving  guarantee  is  the  natural  result  of 
better  business  judgment.  If  seller  willing  to  assume  risk  practice 
does  not  adversely  affect  the  public;  in  fact,  consumer  gets  goods 
at  lower  prices.  So-called  guarantee  against  price  decline  is  really 
a  guarantee  that  prices  will  not  go  up.  The  argument  that  guaran- 
tees establish  more  or  less  inflexible  prices  is  not  borne  out  by  trend 
of  prices  in  guaranteed  commodities,  which  move  upward  and  down- 
ward. The  belief  that  such  practice  inures  to  the  benefit  of  con- 
cerns with  large  capital  ought  not  to  be  argument  against  the  prac- 
tice, as  the  law  does  not  contemplate  the  view  that  size,  unless  demon- 
strably monopolistic,  is  unlawful.  Congress  has  never  legislated 
against  business  establishments  because  of  their  size  and  resources; 
in  fact,  the  Clayton  Act  provides,  in  part,  that  discriminations  in 
prices  between  purchasers,  based  on  difference  in  quantities  sold, 
are  lawful  discriminations.  Regards  guarantee  against  price  decline 
as  similar  to  a  conditional  sale,  which  is  lawful,  and  in  support  of 
that  view  quotes  the  following  cases : 

See  Wing  v.  Wadhams  Oil  &  Grease  Co.,  supra. 

In  M.  &  E.  Solomon  Tobacco  Co.  v.  Cohen  (184  N.  Y.,  308),  the 
facts  were  that  a  sale  of  bonded  tobacco  was  made  under  contract 


32 

at  a  certain  sum,  including  70  cents  per  pound  estimated  duty,  with 
an  agreement  that  if  the  tobacco  was  appraised  at  less  the  duty 
should  be  allowed  to  the  buyer.  The  buyer  paid  for  the  goods,  in- 
cluding duty,  and  on  a  protest  as  to  the  rate  of  duty  the  protest 
Wis  sustained  and  the  duty  was  reduced  to  35  cents.  The  court 
held  that  the  buyer  was  entitled  to  a  portion  of  the  sum  of  duties 
returned. 

In  Thomson  v.  McCaldin  (8  N.  Y.  Supp.  71),  the  action  was  on 
a  contract  for  the  sale  of  lumber  with  a  condition  that  the  pur- 
chaser should  have  the  benefit  of  any  fall  in  the  market  price,  and 
the  court  held  that  this  was  an  enforcible  contract  under  which  the 
vendee  was  entitled  to  the  benefit  of  the  decline  in  the  market  price. 

In  D.  R.  Vivion  Mfg.  Co.  v.  Robertson  (75  S.  W.  644;  176  Mo. 
219),  the  action  was  on  a  contract  for  the  sale  of  manufactured  ar- 
ticles. The  language  of  the  contract  was  "  This  price  ($1.75)  is  to  be 
increased  or  diminished  in  proportion  to  the  rise  or  fall  of  price  of 
material  of  which  they  are  made,  etc."  The  court  found  that  the 
price  had  increased  and  permitted  recover}'  upon  the  basis  of  the 
advanced  price.     It  says,  among  other  things  (75  S.  W.  at  p.  645)  : 

When  July  1st  canre  and  the  bill  was  due  either  party  had  a  right  to  demand 
that  the  price,  $1.75,  should  be  scaled  up  or  down  according  to  the  market  at 
the  several  dates  of  deliveries. 

In  many  other  cases  the  courts  have  been  called  upon  to  construe 
contracts  attempting  to  provide  for  fluctuation  in  prices. 

In  Bass  v.  Veltun  (28  Minn.  512;  11  N.  W.  65),  and  Parker  v. 
Adams  (47  Vt.  139),  there  were  provisions  for  variation  in  price 
according  to  fluctuation  of  the  market. 

In  Champion  Machine  Co.  v.  Gorder  (30  "Neb.  89;  46  N.  W.  253), 
there  was  a  provision  covering  subsequent  reduction  in  prices  by  the 
seller.     Similarly 

Lutty  v.  Waterbury  (140  111.  164;  30  N.  E.  351),  and 
Owen  v.  Mathews  (19  N.  Y.  Supp.  813). 

See  also  Rutledge  v.  McAfee,  supra. 

In  none  of  these  cases  has  any  court  intimated  that  there  was  any- 
thing unfair  or  illegal  in  such  contracts,  or  that  for  any  reason  the 
courts  should  refuse  to  enforce  the  contracts  or  refuse  to  permit  a 

recovery  which  the  facts  disclosed  might  justify. 

******* 

In  Spang  v.  Rainey  (79  Fed.  250),  the  United  States  Circuit  Court 
of  Appeals  for  the  Second  Circuit  had  for  consideration  a  contract 
providing  for  an  increase  in  price  when  "  there  may  be  a  general  ad- 
vance in  the  market  price."  The  court  affirmed  a  judgment  permit- 
ting a  recovery  at  a  rate  in  excess  of  the  contract  price  due  to  an 
increase  in  the  market  price,  and  there  is  no  hint  that  such  a  contract 
is  illegal. 


33 

PLUMBING  SUPPLIES. 
Cyler  &  Mohler,  Baltimore,  Md.  Manufacturers. 

Enables  jobber  to  carry  larger  and  more  diversified  stock,  placing 
him  in  a  position  the  better  to  serve  his  customers.  Guaranteeing 
makes  it  possible  for  jobber  to  sell  on  closer  margin.  On  market 
decline  jobber  immediately  passes  advantage  to  customers.  Guaran- 
tee aids  manufacturer  in  placing  orders  for  his  requirements  and 
works  for  better  and  more  evenly  distributed  factory  operations. 
Express  view  that  guarantee  is  in  the  interest  of  manufacturer, 
jobber,  and  consumer. 
Pacific  Pipe  &  Supply  Co.,  Los  Angeles,  Calif.  Jobbers. 

To  meet  market  conditions  jobbers  obliged  to  carry  large  stocks, 
an  investment  that  would  not  be  justified  unless  manufacturer  ac- 
corded guarantee  against  price  decline.  Immediately  upon  notifi- 
cation by  manufacturer  jobbers  reduce  prices  of  stock  on  hand  for 
benefit  of  consumer.  Without  guarantee  jobber  would  be  inclined 
to  hold  up  prices  as  long  as  possible. 
Samuel  S:oane  &  Co.,  Rochester,  N.  Y.  Jobbers. 

Manufacturers  are  familiar  with  primary  market  conditions  and 
should  intelligently  estimate  selling  price.  Practice  permits  maxi- 
mum and  efficient  factory  operation.  Transfer  of  goods  in  advance 
of  season's  call  for  benefit  of  manufacturer,  and  there  is  no  reason 
why  we  should  not  be  willing  to  accord  protection  to  jobber  for 
reasonable  period,  say  60  to  90  days. 

ROOFING. 
The  Philip  Carey  Co.,  Cincinnati,  Ohio.  Manufacturers. 

Have  extended  guarantee  against  decline  in  its  own  price  to  date 
of  shipment,  but  not  thereafter. 

SCREENS. 
American  Wire  Fabrics  Co.,  Chicago,  111.  Manufacturers. 

Manufacture  wire  cloth  for  screen  doors  and  windows,  a  season- 
able commodity,  and  is  necessary  to  give  dating  at  outset  of  season 
to  get  distributors  to  take  goods  several  months  before  needed.  Sea- 
son ends  latter  part  July.  Many  sections  these  goods  are  not  needed 
again  until  following  year.  Have  established  rule  of  giving  Feb- 
ruary first  dating  on  goods  shipped  after  September.  Dealers  would 
not  take  unless  guaranteed.  If  practice  not  followed,  we  would 
have  to  build  warehouses,  as  not  able  to  ship  in  short  time  all  goods 
required.     Better  to  distribute  shipments  evenly  over  year. 

SHIRTS. 
Oppenheim,  Oberndorf  &  Co.,  Baltimore,  Md.  Manufacturers. 

Guarantee  not  necessary  except  when  prices  at  abnormal  level. 
Assurance  excites  confidence  in  buyers,  enables  manufacturer  to  at- 
11403—20 5 


34 

tain  maximum  production  without  interruption,  and  produces  sta- 
bilizing effect  on  market.  Through  greater  production  lower  unit 
prices  are  obtained  by  presence  of  greater  volume  of  goods  in  mar- 
ket With  inflated  market,  do  not  believe  jobbers  overbuy.  With- 
out guarantee  during  high-priced  period  jobbers  will  curtail  orders, 
with  resultant  partial  suspension  of  production  activities.  Do  not 
believe  practice  operates  to  disadvantage  of  manufacturer  unwill- 
ing or  unable  to  extend  privilege.  Guarantee  does  not  act  as  bar 
to  price  reduction,  as  nature  of  practice  suggests  otherwise. 

SHOVEL^ 
The  Conneaut  Shovel  Co.,  Conneaut,  Ohio.  Manufacturers. 

As  a  general  practice  do  not  accord  guarantee  but  feel  would  stabil- 
ize market  in  this  industry  and  would  work  to  interest  of  public 
and  manufacturer,  in  that  it  would  provide  normal  stocks  in  hands 
of  dealers  and  give  them  assurance  that  nothing  would  be  lost  by 
making  purchases  in  advance  of  needs. 

SILOS. 
Lansing  Silo  Co.,  Lansing,  Mich.  Manufacturers. 

In  sales  of  silos  price  is  set  when  order  is  solicited,  and  guarantee 
against  decline  seems  fair  to  first  purchasers. 

McClure  Co.,  Saginaw,  Mich.  Manufacturers. 

Guarantee  facilities  buying  during  periods  of  doubt  and  does 
not  impose  hardship  on  anyone.  When  conditions  warrant,  be- 
lieve proper  to  extend  protection  for  reasonable  period  on  unde- 
livered portion  of  contract. 

TENTS,  AWNINGS,  ETC. 
Clifton  Manufacturing  Co.,  Waco,  Tex.  Manufacturers. 

Are  forced  to  guarantee  prices  because  products  dealt  in  are  of 
seasonable  character,  and  merchants  will  not  assume  price  obliga- 
tion on  future  shipments.  This  practice  enables  them  to  better 
gauge  their  own  requirements.  Express  the  view,  however,  that  on 
nonseasonal  goods  likely  practice  could  be  eliminated.  To  illus- 
trate (their  letter  dated  Jan.  6,  1920),  orders  booked  during  past 
60  days  are  for  shipment  up  to  September  1,  carrying  guarantee 
against  decline.  Practice  of  dating  and  guaranteeing  necessary,  as 
customers  could  not  be  supplied  if  they  were  obliged  to  wait  until 
about  30  days  before  goods  were  needed.  Does  not  guarantee  against 
decline  subsequent  to.  date  of  shipment. 

TOILET  ARTICLES. 
The  Mennen  Co.,  Newark,  N.  J.  Manufacturers. 

Guarantee  as  applied  to  undelivered  portion  of  orders  contracted 
for  in  advance  of  season  enables  jobber  to  figure  costs  more  accurately, 


35 

stabilizes  his  business,  keeps  him  out  of  the  market  in  periods  of 
shortage,  prevents  destructive  fluctuations,  and  distributes  carrying 
charges  equitably.  Under  above  guarantee,  seller  will  know  his 
volume  of  output,  be  able  to  reduce  cost  of  operation  by  more  even 
distribution  of  output,  make  production  more  uniform  and  less  ex- 
pensive, and  reduce  carrying  charges  and  investment  expense  on 
account  of  storage  facilities.  Protects  manufacturer  against  heavy 
orders  when  declines  occur,  with  consequent  shortages  of  materials. 
If  guarantee  goes  to  unconsumed  material  on  former  deliveries  it 
invites  a  speculative  element  and  brings  higher  costs,  preventing 
natural  reduction  in  prices.  Under  above  practice,  small  operator 
does  not  operate  at  disadvantage  with  large  operator,  unless  latter 
rebates  for  stock  on  hand.  Wisdom  of  above  contract  was  demon- 
strated to  us  during  the  war.  Where  we  did  not  have  such  contract 
we  were  compelled  to  become  speculators,  not  daring  to  wait  or  buy 
in  normal  quantities  but  entered  the  market  during  temporary  breaks 
and  bought  large  quantities,  advancing  the  market  for  the  next 
buyer. 

Guarantee  upon  single  purchases  or  a  series  of  single,  unrelated 
purchases  invites  abnormal  orders,  creating  a  vicious  circle  of  over- 
selling, shortage  of  production,  and  higher  prices  not  based  upon 
normal  consumption  but  upon  speculative  demand.  To  illustrate: 
Where  a  manufacturer  makes  10  per  cent  on  an  article,  the  unit  cost 
of  which  is  $1,  and  subsequent  costs  permit  him  to  sell  a  similar 
article  for  90  cents,  with  the  same  percentage  of  profit,  if  he  rebates 
10  cents  on  account  of  former  articles  sold,  his  profit  is  wiped  out. 
Such  guarantee  tends  to  establish  artificial  prices  and  encourages 
the  making  of  inordinate  profits. 

WALNUT  GROWERS. 

California  Walnut  Growers'  Association,  Trade  Association. 

Los  Ange!es,  Calif. 

Association  believes  such  guarantee  on  certain  products  would  re- 
sult in  benefit  to  all  parties  from  producer  to  consumer. 

WOOLEN  TEXTILES. 

The  Beckman  Co.,  Cleveland,  Ohio.  Manufacturers. 

Guarantees  customers  against  decline  only  in  its  own  prices  to  date 
of  shipment. 

MISCELLANEOUS. 
Douglas  &  Evans,  New  York,  N.  Y.  Exporters  and  Importers. 

As  applies  to  export  business  believes  practice  would  be  helpful. 
Would  stimulate  purchasing.  Foreign  buyers  accustomed  to  this 
concession. 


36 

Fairbanks  Co.,  New  York,  N.  Y.  Jobbers. 

For  many  years  manufacturers  have  protected  us  with  guarantee 
as  related  to  stock  on  hand  at  time  of  price  decline. 
George  E.  Farrand,  Attorney,  Los  Angeles,  Calif.  Attorney. 

On  behalf  of  several  business  concerns  in  California  favors  con- 
tinuance of  policy  of  guaranteeing  against  decline  in  price. 

A.  B.  Jones  Co.,  Jonesboro,  Ark. 

Stabilizes  prices.  Declares  that  guarantee  saves  margin  which  job- 
ber would  otherwise  be  obliged  to  add  to  selling  cost.  Makes  lines 
not  guaranteed  less  attractive.  Without  guarantee  dealers  will  cancel 
orders  and  manufacturer  or  producer  faces  alternative  of  bringing 
suit  and  losing  customers'  business,  which  procedure  would  be  more 
expensive  than  the  granting  of  this  concession. 

Kelley  Axe  Manufacturing  Co.,  Charleston,  W.  Va. 

Manufactures  seasonal  goods,  which  are  sold  the  first  three  months 
of  year,  for  delivery  in  fall  and  winter.  Fearing  decline  in  price 
between  date  of  order  and  time  of  delivery  jobbers  will  not  place 
orders  unless  accorded  guarantee.  Under  such  circumstances  with- 
out guarantee,  manufacturers  unable  to  plan  for  jobbers'  needs  suf- 
ficiently in  advance  to  properly  take  care  of  the  market.  Guarantee 
provides  for  continuous  factory  operation  and  results  in  holding 
organization  intact.  Manufacturers  do  not  particularly  care  for 
custom,  but  conditions  in  trade  require  adherence  to  same.  Would 
be  ruinous  to  business  to  uproot  such  old  established  practice. 

Lakewood  Engineering  Co,  Cleveland,  Ohio.  Manufacturers. 

Believe  practice  necessary  in  certain  industries,  particularly  basic 
industries.  Practice  perhaps  not  necessary  with  trade-marked 
goods,  except  that  seller  of  such  articles  ought  to  treat  all  customers 
alike  and  give  rebate  to  purchaser  who  bought  in  advance  of  decline 
as  offset  to  lower  price  at  which  sold  to  those  purchasing  subsequent 
to  decline.  Guarantee  necessary  and  fair  in  export  trade  with  dis- 
tant countries,  where  wide  fluctuations  may  take  place  between  date 
of  sale  and  receipt  of  goods  in  consignees'  countries.  Would  stabilize 
production  and  make  for  more  ecective  relations  between  buyer  and 
seller. 
C.  A.  Libbey,  Oshkosh,  Wis.  Barn  Fixtures  Manufacturers. 

Guarantee  against  decline  has  made  unnecessary  a  second  trip  of 
our  salesmen  to  solicit  business,  as  dealers  bought  season's  require- 
ment in  one  order,  thus  saving  expense  of  such  trips. 
Kerr  &  McCord,  Seattle,  Wash.  Attorneys. 

Attorney  for  Federal  Milk  Co.,  Seattle,  Wash.  Newly  estab- 
lished businesses  need  guarantee  as  lever  to  enter  market.    Permits 


37 

shipping  greater  number  solid  carloads,  thereby  reducing  unit  cost 
of  transportation.  Jobbers  able  to  dispose  of  well-known  brands  of 
milk  more  quickly  than  brands  less  known ;  consequently,  manufac- 
turers of  latter  required  to  give  longer  guarantee  against  decline. 
If  not  able  to  place  large  stocks,  subject  to  guarantee,  in  hands  of 
jobbers,  alternatives  are  more  expensive  less  than  carload  shipments 
or  the  maintenance  of  storage  facilities  in  jobbing  centers  at  expense 
of  producers.  Refusal  to  permit  guarantee  would  operate  to  ad- 
vantage of  large  manufacturers. 

Scovel  Iron  Stove  Co.,  San  Francisco,  Calif.  Jobbers. 

Believe  practice  does  not  constitute  unfair  competition,  and 
wherever  manufacturer's  capital  enables  him  to  offer  customers  such 
inducement  and  protection,  feel  he  should  not  be  prevented  from  ex- 
tending privilege.  Excites  buyers'  confidence,  but  not  to  degree  that 
they  will  buy  beyond  normal  requirements.  As  the  law  of  supply 
and  demand  usually  sets  price  levels,  manufacturers  would  not  be 
able  to  postpone  passing  price  decline  benefit  to  trade,  especially  as 
such  action  might  result  in  lessened  sales  and  the  imposition  of 
greater  loss  than  would  be  represented  by  the  allowance  paid  under 
guarantee. 
United  States  Wind  Engine  &  Pump  Co.,  Batavia,  111.  Jobbers. 

Guarantee  greatly  assists  in  selling  goods,  especially  on  high 
market,  and  exercises  a  stabilizing  influence.  Purchasing  in  large 
quantities  from  distant  manufacturers  lowers  unit  cost  as  compared 
with  smaller  purchases  from  local  sources. 


REPLIES  OPPOSING  GUARANTEE  AGAINST  PRICE  DECLINE. 


ALFALFA. 


Haywood  Alfalfa  Warehouse  Co.,  Kansas  City,  Mo. 

Millers  desire  to  enter  strong  protest  against  practice,  expressing 
the  opinion  that  it  is  an  evil  custom  and  ought  to  be  stopped  by  legis- 
lation. 

AUTOMOBILE  ACCESSORIES. 

Eclipse  Manufacturing  Co.,  Indianapolis,  Ind.  Manufacturers. 

Handle  trade-marked  articles,  which  is  sold  on  percentage  profit 
basis.    Selling  price  moves  in  sympathy  with  cost  of  production.    If 
jobber  is  given  guarantee,  manufacturer  should  also  be  protected. 
Hudson  Motor  Specialties  Co.,  Philadelphia,  Pa.  Manufacturers. 

Really  a  form  of  rebating  and  results  in  unfair  competition.  Man- 
ufacturer not  so  protected  and  must  pocket  loss  if  decline  occurs. 
Practice  might  lead  manufacturer  to  overstock  dealers  and  thereby 
eliminate  competitors. 

AUTOMOBILE  TRACTORS. 

Fageol  Motors  Co.,  Oakland,  Calif.  Manufacturers. 

Does  not  give  guarantee — has  done  so  once  or  twice  when  obliged, 
but  will  not  continue  practice.    Not  sound  business. 

BLACKSMITH'S  SUPPLIES. 

Champion  Tool  Co.,  Meadville,  Pa.  Manufacturers. 

Believes  unfair  practice.  Is  hardship  on  manufacturers  with 
small  capital.  Gives  jobbers  unfair  advantage,  and  encourages  them 
to  take  too  great  risk  in  placing  orders.  Creates  speculative  buying. 
Also  makes  for  disadvantage  as  between  large  and  small  jobbers, 
former  being  able  to  secure  such  concessions  which  are  denied  latter. 
Guarantee  tends  to  maintain  artificial  level  of  prices — certainly 
does  not  provide  incentive  for  manufacturers  to  reduce  prices,  as 
would  take  place  were  they  free  to  do  so.    When  decline  takes  place  in 

(38) 


39 

primary  markets,  this  practice  delays  passing  of  decline  on  to  con- 
sumer. 

BOX  MAKERS. 

Mid- West  Box  Co.,  Chicago,  111.  Manufacturers. 

Practice  unfair  in  that  any  resultant  loss  is  absorbed  by  one  party 
to  the  contract. 
Stockton  Box  Co.,  Stockton,  Calif.  Manufacturers. 

Does  not  guarantee  and  is  opposed  to  practice,  refusing  to  grant 
this  concession  to  anybody.     t 

BRASS  AND  BRONZE  PRODUCTS. 

Kingwell  Bros.,  San  Franicsco,  Calif.  Manufacturers. 

Do  not  believe  in  practice. 

CEREALS. 

Atlas  Cereal  Co.,  Kansas  City,  Mo.  Manufacturers. 

In  rolled-oats  business  there  are  a  few  large  operators  and  a  few 
small  operators — entire  business  possibly  in  hands  of  10  corpora- 
tions. Our  experience  indicates  guarantee  is  injurious  to  small 
operators  and  a  vicious  practice.  Believe  jobber  should  buy  in  ade- 
quate quantities  to  meet  requirements  and  that  speculative  element 
should  be  removed.  Are  opposed  to  guaranteeing  prices  beyond 
date  of  sale  and  delivery. 

CHEMICALS. 

Butterworth-Judson  Corporation,  New  York,  N.  Y.  Manufacturers. 

Competition  has  sometimes  forced  them  to  extend  guarantee,  but 
decidedly  opposed  to  such  custom. 

H.  K.  Mulf ord  &  Co.,  Philadelphia,  Pa.  Manufacturers. 

Guarantee  against  price  decline  unfair  method  of  competition, 
resulting  in  abuses. 

CHO^O^ATE. 

Riesener  Chocolate  Co.,  San  Francisco,  Calif.  Manufacturers. 

Makes  no  guarantee  on  either  contract  or  open  orders.  Believes 
practice  unfair  to  manufacturer  as  he  purchases  raw  materials  in 
open  market  and  has  no  way  of  preventing  loss  through  price  decline. 
Price  guarantee  will,  of  course,  induce  jobbers  to  stock  ahead  and 
unless  adequate  stocks  are  carried  by  jobbers  in  this  line  will  re- 
quire establishment  of  manufacturers'  warehouses  in  jobbing  centers, 
which  they  regard  as  uneconomical.  Practice  would  also  work  hard- 
ship against  small  manufacturer,  who  is  not  able  to  support  stocks 
in  hands  of  jobbers  through  price  guarantee.  Believes  price  should 
be  set  at  time  of  sale  and  no  readjustment  made. 


40 

CLOTH. 

New  Jersey  Cloth  Co.,  Trenton,  N.  J.  Manufacturers. 

Opposes  guarantee  and  believes  commission  should  formally  dis- 
approve. In  normal  times  have  afforded  protection  to  customers 
through  means  of  cancellation  under  certain  conditions. 

Western  Shade  Cloth  Co.,  Chicago,  111.  Manufacturers. 

Guarantee  imposes  hardship  upon  the  seller  and  encourages  jobbers 
to  purchase  speculatively.  A  one-sided  agreement.  Practice  natu- 
rally restrains  competition  for  only  manufacturers  of  large  capital 
can  afford  to  take  such  chances  on  future  prices. 

COFFEE. 

American  Coffee  Co.,  New  Orleans,  La.  Jobbers. 

Actual  experience  many  years  guaranteeing  against  our  own  ad- 
vance or  against  decline  (60  to  90  days)  to  cover  period  date  of  sale 
to  date  of  shipment,  have  observed  great  abuse  and  sustained  sub- 
stantial losses.  To  cite  specific  case:  April  and  May,  1919,  when 
coffees  were  undergoing  substantial  advances,  had  60  and  90  day 
contracts  outstanding  and  sustained  in  June,  1919,  operations  net 
deficit  of  $7,988.  During  July  and  August,  1919,  market  declined 
rapidly.  Submit  that  this  policy  one  of  the  most  abominable  and 
expensive  customs  in  merchandising.  July  o,  1919,  withdrew  60  and 
90  day  and  substituted  30  day  guarantee.  One  customer  offered  con- 
tract for  1920  requirements  at  fixed  price.  We  declined  their  busi- 
ness on  such  basis.  Practice  leads  to  overstocking  on  roasted  coffee. 
MacGowan  Coffee  Co.  (Inc.),  Jackson,  Miss.  Wholesale. 

Custom  wrong  in  principle,  tending  to  encourage  speculation  and 
leading  to  overstocking  in  perishable  products.  In  perishable  goods 
actually  constitutes  certain  proportion  of  wastage,  which  loss  must 
be  calculated  in  fixing  profits.  Practice  acts  as  bar  to  coffee  roasters 
reducing  prices. 

Maury-Cole  Co.,  Memphis,  Tenn.  Manufacturers. 

Against  better  judgment  have  been  obliged  to  guarantee  price  to 
date  of  shipment,  which  necessitates  calculating  wider  margin  of 
profit  than  figured  on  straight  sales.  Unbusinesslike,  encourages 
speculation,  and  leads  to  overbuying.  Also  gives  unfair  advantage 
to  those  extending  privilege  as  against  those  who  do  not  follow 
practice. 

Olson  Coffee  Co.,  Omaha,  Nebr.  Roasters. 

Guarantee  encourages  retailer  and  wholesaler  to  carry  unneces- 
sarily large  stocks  and  practice  ought  to  be  discontinued.  To  illus- 
trate: On  last  rise  in  coffee  market  retailers  inflated  purchases  8  or 


41 

10  times,  withdrawing  large  quantity  of  coffee  from  manufacturers' 
market,  causing  manufacturers  to  replenish  stocks,  artifically  stimu- 
lating market  and  forcing  increase  in  prices. 

CORDAGE  AND  ROPE. 
Columbian  Rope  Co.,  Auburn,  N.  Y.  Manufacturers. 

Believes  provision  unfair  and  unjust  to  manufacturer.  Expresses 
opinion  that  so-called  contracts  are  merely  options  to  jobbers  and 
carry  no  advantage  to  manufacturer.  Manufacturer  does  execute 
and  live  up  to  real  contracts  for  raw  materials. 

Plymouth  Cordage  Co.,  North  Plymouth,  Mass.  Manufacturers. 

Raw  materials,  much  of  which  are  shipped  long  distances  in  ad- 
vance of  use,  not  bought  subject  to  such  guarantee  and  do  not  be- 
lieve fair  to  impose  obligation  on  manufacturer. 

E.  T.  Rugg  &  Co.,  Newark,  Ohio.  Manufacturers. 

Market  conditions  would  be  better  if  practice  were  discontinued. 

Tubbs  Cordage  Co.,  San  Francisco,  Calif.  Manufacturers. 

Manufacturers  do  not  get  guarantee  on  raw  materials  and  if 
obliged  to  extend  guarantee  to  jobbers  would  mean  introduction  of 
another  element  of  risk  in  business.  Price  guarantee  operates  to 
advantage  of  large  dealers.  Small  dealers  not  able  to  buy  large 
quantities  and  therefore  less  sought  by  manufacturers  who  extend 
guarantee.     Discontinuance  of  practice  ought  to  benefit  business. 

Whitlock  Cordage  Co.,  New  York  City.  Manufacturers. 

Although  manufacturers  in  our  industry  have  extended  guarantee 
generally  to  date  of  shipment,  but  sometimes  beyond,  do  not  be- 
lieve practice  rests  upon  good  business  principle.  Custom  has  be- 
come so  ramified  that  it  is  difficult  for  a  manufacturer  to  refuse 
such  courtesy.  We  are  obliged  to  purchase  raw  materials  in  open 
market,  subject  to  any  future  change  in  price. 

COTTON. 

Cotton  Thread  Manufacturers'  Exchange,  Trade  Association. 

New  York  City,  N.  Y. 

While  practice  is  not  followed  in  this  industry,  members  of  the 
Exchange  voted  to  put  organization  on  record  as  adverse  to  practice. 

Eagle  &  Phenix  Mills,  Columbus,  Ga.  Manufacturers. 

Believe  guarantee  unsound  and  unreasonable.  Besides,  it  is  a  one- 
sided contract.  We  buy  raw  materials  in  market  subject  to  fluctua- 
tion and  see  no  reason  for  granting  our  customers  such  favors. 

J.  Milton  Hagy  Waste  Works,  Philadelphia,  Pa.  Manufacturers. 

Guarantee  against  price  decline  worthless  to  manufacturer — a  one- 
sided proposition.  Considered  sharp  practice  resorted  to  by  sellers 
overanxious  to  make  sales. 


42 

Albert  D.  Smith  &  Co.,  New  York.  Manufacturers  and  Distributors. 

As  manufacturers  and  commission  merchants  desire  to  enter  pro- 
test against  practice  of  selling  with  guarantee. 

DYESTUFF. 

Atlantic  Dyestuff  Co.,  Boston,  Mass.  Manufacturers. 

We  discourage  practice,  but  in  some  cases  have  been  obliged  to 
protect  our  customers  against  our  own  reduction.  Have  tried  to 
keep  contracts  free  of  such  objectionable  terms. 

ELECTRICAL  SUPPLIES. 

Johnson  Electric  Supply  Co.,  Cincinnati,  Ohio.  Jobbers. 

Practice  encourages  jobbers  to  carry  too  much  stock  and  has 
tendency  to  keep  up  prices. 

METAL  FILING  EQUIPMENT. 

Baker- Vawter  Co.,  Benton  Harbor,  Mich.  Manufacturers. 

Does  not  give  guarantee,  but  believes  practice  is  not  good  for 
business. 

FOOD. 

Aspegren  &  Co.,  New  York  City.  Manufacturers. 

Practice  fundamentally  unsound.  Would  inject  speculative  fea- 
ture. Contracts  for  raw  materials  not  subject  to  protection  against 
decline.  If  we  guarantee  prices,  we  assume  risk  and  find  ourselves 
"playing  the  market,"  with  attendant  evils.  Have  found,  even  at 
higher  price,  jobbers  give  business  to  those  who  guarantee  prices. 
Under  guarantee  system  jobber  assumes  no  risk;  encourages  him  to 
contract  for  more  than  legitimate  needs  in  anticipation  of  speculative 
profits.  Overbuying  puts  greater  quantity  products  than  necessary 
in  trade  channels.  Guaranteeing  prices  means  expense  to  manu- 
facturer, same  as  other  costs  of  selling,  and  consumer  pays  it.  When 
prices  raw  materials  decline  manufacturers  reluctant  to  reduce  prices 
because  of  contracts  at  higher  prices. 
Atlanta  Refining  &  Manufacturing  Co.,  Atlanta,  Ga.  Manufacturers. 

Are  much  opposed  to  policy  of  selling  lard  substitute  against  de- 
cline.    Have  been  forced  by  larger  interests  to  sell  on  this  basis  past 
five  years. 
Memphis  Milling  Co.,  Memphis,  Tenn.  Manufacturers. 

Do  not  sell  with  guarantee,  as  not  believed  legitimate  way  to  con- 
duct business.  Has  tendency  to  maintain  artificial  price  level.  Ani- 
mal foodstuffs,  with  little  food  value,  subject  to  guarantee,  would 
place  at  disadvantange  superior  goods  without  guarantee. 


43 

Purity  Oats  Co.,  Keokuk,  Iowa.  Manufacturers. 

Regards  as  a  vicious  practice  and  fundamentally  unsound,  work- 
ing hardship  upon  manufacturer  and  bringing  no  relief  to  consumer. 
Experience  leads  to  belief  that  consumer  will  not  get  benefit  unless 
jobber  is  driven  by  keen  competition  to  reduce  price.  Encourages 
speculation  and  overanticipation  of  needs. 

Southern  Corn  Mills  (Inc.),  Memphis,  Tenn.  Manufacturers. 

In  order  to  meet  competion  obliged  at  times  to  give  such  protection, 
but  do  not  approve  practice.  Do  not  regard  as  legitimate  conduct  of 
business,  as  it  tends  to  force  up  prices  and  sometimes  gives  a  market 
to  inferior  brands  of  feeds  and  with  guarantee  as  against  superior 
brands  that  do  not  carry  guarantee. 

GLYCERIN. 

Black,  Varian  &  Simon,  New  York,  N.  Y.  Attorneys  for  Refiners. 

Trade  custom  in  the  glycerin  industry  has  given  approval  to  this 
guarantee,  but  it  is  believed  that  it  jeopardizes  the  existnece  of  the 
small  producer  and,  in  the  long  run,  is  unfair  to  the  consumer.  If 
one  refiner  does  not  meet  conditions  offered  by  another,  the  only 
alternative  left  is  closing  down  his  plant.  The  practice  leads  to 
speculation  and  unstabilization.  Observation  shows  that  practice 
leads  to  control  of  this  industry  by  a  few  large  concerns,  and  if  per- 
mitted to  grow,  will  suppress  competition.  Prevents  refiner  from 
offering  lower  price  than  specified  in  outstanding  contracts. 

GROCERS. 

Coleman- Clark  Grocery  Co.,  Paducah,  Ky.  Wholesalers. 

Regards  as  detrimental  to  business  and  has  tendency  to  inflate 
prices. 

C.  W.  Cooper  Co.,  Thomasville,  Ga.  Wholesalers. 

Practice  should  be  abolished  so  as  to  remove  temptation  to  speculate 
in  food  commodities.  Guarantee  acts  as  incentive  for  salesmen  to 
oversell  customers. 

HARDWARE. 

Henkle  &  Joyce  Hardware  Co.,  Lincoln,  Nebr.  Jobbers. 

A  discriminatory  practice  and  ought  to  be  forbidden  by  law ;  pre- 
vents genuine  competition.  While  we  have  never  refused  to  accord 
such  privilege,  still  do  not  believe  a  proper  way  to  distribute  mer- 
chandise. 

Lorick  &  Lowrance,  Columbia,  S.  C.  Jobbers. 

Regards  as  unfair  practice  which  encourages  jobber  to  carry  larger 
stock  than  he  would  risk  if  obliged  to  go  into  the  open  market.     If 


44 

privilege  is  ever  withdrawn  it  will  be  at  a  time  when  jobber  is  heavily- 
stocked  and  will  cause  him  great  loss. 

Mitchell-Powers  Hardware  Co.,  Bristol,  Tenn.  Jobbers. 

Hope  for  lower  prices,  but  do  not  believe  will  come  as  long  as 
manufacturers  are  permitted  under  price  guarantee  to  load  up  job- 
bers, a  practice  which  results  in  elimination  of  competition. 
Nelson  Hardware  Co.,  Roanoke,  Va.  Jobbers. 

Believe  that  custom,  if  practiced  universally,  would  tend  to  innate 
prices  and  restrain  manufacturers  from  making  reductions  while 
guarantees  were  out.  However,  recognizes  that  under  existing  cir- 
cumstances it  is  necessary  for  manufacturer  to  guarantee  prices  in 
order  to  market  goods  for  entire  season. 

Summers  Hardware  Co.,  Johnson  City,  Tenn.  Wholesalers. 

Practice  has  tendency  to  continue  higher  prices  longer  than  where 
guarantee  not  accorded.  It  is  true,  however,  that  in  some  lines  job- 
bers can  not  be  induced  to  buy  without  the  guarantee. 

The  A.  I.  Root  Co.,  Medina,  Ohio.  Manufacturers. 

Believe  practice  should  be  discontinued,  in  that  entire  burden  is 
placed  upon  manufacturer.  Of  course,  practice  enables  jobbers  to 
carry  large  stocks. 

HONEY. 

Rosenberg  Bros.  &  Co.,  San  Francisco,  Calif.  Manufacturers. 

Regards  as  device  resorted  to  by  manufacturers  to  stimulate  buy- 
ing, which  practice  results  in  overstocking  and  economic  loss.  If 
manufacturer  intends  to  fulfill  obligation,  he  is  obliged  to  protect 
himself  by  increasing  his  margin  of  profit. 

HOSIERY. 

Berkshire  Knitting  Mills,  Reading,  Pa.  Manufacturers. 

Guarantee  is  unbusinesslike  and  unsound,  and  there  is  no  need  for 
such  practice.  Responsible  manufacturers  are  obliged  to  obtain  their 
materials  without  guarantee,  and  payment  of  jobbers'  losses  would 
react  unfairly  upon  manufacturers. 

Richmond  Hosiery  Mills,  Rossville,  Ga.  Manufacturers. 

Unequivocally  opposed  to  practice,  which  places  unfair  burden 
upon  manufacturer  instead  of  distributing  the  loss  through  the  vari- 
ous stages  of  trade. 

Union  Manufacturing  Co.,  Union  Point,  Ga.  Manufacturers. 

Unless  abnormal  profits  are  made  under  guarantee,  such  practice 
will  lead  to  bankruptcy. 


45 

HOUSE  FURNISHINGS. 

Otis  Hidden  Co.,  Louisville,  Ky.  Jobbers. 

Where  such  protection  is  afforded,  profit  must  be  set  at  figure  to 
offset  the  hazardous  undertaking  and  tend  to  keep  up  prices.  To  be 
fair,  jobbers  who  receive  guarantee  should  guarantee  retailers,  but 
such  guarantee  might  wipe  out  jobbers'  profits.  Would  operate  to 
unfair  advantage  of  wide-awake  retailer  and  favor  less  progressive 
merchant,  the  latter  receiving  guarantee  on  large  unsold  stock  which 
would  not  have  moved  due  to  lack  of  enterprise. 

IRON  AND  STEEL. 

T.  R.  Almond  Manufacturing  Co.,  Ashburnham,  Mass.  Tool  Manufacturers. 

Practice  of  guaranteeing  against  decline  should  be  discontinued. 

Bolt,  Nut  &  Rivet  Institute,  Pittsburgh,  Pa.  Trade  Association. 

Expresses  belief  that  such  guarantee  is  practically  option  given 
buyer  to  accept  or  reject  goods,  depending  upon  prices  at  date  of 
delivery  as  against  prices  at  date  of  sale.  Encourages  speculative 
buying  and  inflates  orders,  creating  artificial  prices.  Guarantee 
beyond  date  of  shipment  is  vicious,  as  rebate  in  most  cases  is  really 
additional  profit.  Such  form  of  guarantee  does  not  prevail  in  bolt, 
nut,  and  rivet  industry.  Guarantee  effective  until  date  of  shipment 
is  practiced  in  this  industry  and  is  not  regarded  as  being  so  per- 
nicious, although  it  does  introduce  a  speculative  element  in  business. 
The  Institute  would  welcome  the  abolition  of  this  practice.  They 
do  not  believe  reform  can  be  brought  about  within  the  trade. 

Detroit  Range  Boiler  &  Steel  Barrel  Co.,  Detroit,  Mich.  Manufacturers. 

An  evil  practice.     Gives  large  manufacturers  unfair  advantage 
over  small  manufacturers,  creates  fictitious  demand,  and  leads  to 
speculation. 
Dikeman  Manufacturing  Co.,  Norwalk,  Conn.  Tool  Manufacturers. 

Dealers  should  so  estimate  requirements  as  to  make  this  practice 
unnecessary.     Guarantee  could  only  be  given  by  manufacturers  of 
large  resources. 
Drill  &  Reamer  Society,  New  York  City.  Trade  Association. 

Society  by  resolution  is  on  record  as  disapproving  guarantee. 

Ohio  Falls  Iron  Co.,  New  Albany,  Ind.  Manufacturers. 

Guarantee  operates  to  disadvantage  of  small  concerns  in  steel  in- 
dustry. Large  steel  manufacturers  own  ore  deposits,  but  small  man- 
ufacturers obliged  to  buy  in  open  market,  with  purchase  made  sub- 
ject to  fluctuating  price. 

Peden  Iron  &  Steel  Co.,  Houston,  Tex.  Jobbers. 

Jobbers  do  not  rebate  manufacturers  where  prices  advance  and 
larger  profits  are  taken,  and  believe  that  guarantee  against  price  de- 


46 

cline  is  a  question  for  determination  by  the  manufacturer,  without 
any  demand  being  exerted  upon  him  by  the  jobber. 

D.  M.  Sechler  Implement  &  Carriage  Co.,  Moline,  111.  Manufacturers. 

Argument  that  price  guarantee  stimulates  business  is  not  convinc- 
ing. Believe  better  to  rely  upon  moderate  volume  of  trade,  with  the 
guarantee  that  price  bargained  for  will  be  paid. 

H.  D.  Taylor  Co.,  Buffalo,  N.  Y.  Jobbers. 

Prefers  to  buy  in  open  market  on  most  favorable  terms  and  take 
chances  on  future  market  conditions.  Do  not  believe  manufacturers 
who  practice  custom  secure  unfair  advantage  as  liability  so  assumed 
must  be  taken  into  their  unit  price.  Do  not  believe  public  hurt 
should  jobbers  make  excessive  purchases. 

Trimont  Manufacturing  Co.,  Roxbury,  Mass.  Tool  Manufacturers. 

Unfair  to  guarantor,  sometimes  requiring  absorption  of  consider- 
able loss.  Regards  as  unethical.  While  manufacturer  secures  ad- 
vantage through  advance  acceptance  of  stock  by  jobbers,  still  do  not 
believe  that  the  former  should  guarantee  against  decline  unless  per- 
mitted to  increase  prices  when  market  advances. 

JELLIES. 
Phez  Co.,  Salem,  Oreg.  Manufacturers. 

Makes  emphatic  protest  against  such  guarantee  and  believes  prac- 
tice should  be  stopped.  The  following  illustration  of  the  operation 
of  guarantee  to  grower  by  canner  is  cited :  Take  an  average  supply 
of  1,000  tons  of  strawberries  in  one  district,  two-thirds  of  which  can- 
ning establishments  have  agreed  to  take  at  specified  price.  Each 
concern  feels  it  should  obtain  part  of  the  remaining  available  supply 
not  contracted  for,  and  bidding  for  such  supply  commences,  with 
result  that  the  price  is  driven  up  6  or  7  cents,  which  automatically 
raises  the  price  of  supply  previously  contracted  for,  because  growers 
are  given  benefit  of  market  advances.  Above  custom  will  result,  this 
year,  in  15-ounce  jars  of  jam  being  sold  f.  o.  b.  factory  $4.50  to  $5 
per  dozen,  instead  of  $3  to  $3.50  per  dozen,  as  last  year.  This  situa- 
tion could  be  remedied  by  making  straight  price  for  two-thirds  of 
available  tonnage,  and  should  competition  for  the  remaining  one- 
third  force  up  prices  the  resultant  increase,  averaged  for  the  whole 
supply,  would  not  be  too  great  a  burden  upon  the  consumer.  Guar- 
antee against  decline  operates  to  keep  up  prices,  from  which  we  are 
now  suffering. 

KNIT  GOODS. 

Knit  Goods  Manufacturers  of  America,  Utica,  N.  Y.  Trade  Association. 

Gives  large  concerns  unfair  advantage,  encourages  gambling  as  to 

prices  and  results  in  jobbers  overbuying.    Raw  materials  entering 


47 

into  manufacture  of  underwear  not  guaranteed;  labor  can  not  be 
relied  upon  to  produce  uniform  output  nor,  unless  wage  scale  in 
effect  is  covered  by  agreement  as  to  time,  will  cost  of  labor  be  known. 
Expense  of  guarantee  is  added  by  manufacturer  to  cost  of  goods  and 
passed  to  consumer.  Declines  in  manufacturers'  market  are  not 
immediately  felt  by  consumers,  but  simply  mean  loss  to  manufac- 
turer, gain  to  jobber  and  retailer,  and  no  compensation  to  consumer. 
Unfair  to  manufacturers  who  do  not  give  and  to  dealers  who  do  not 
receive  such  protection.  Works  hardship  on  small  manufacturers 
and  small  dealers.  Underwear  manufacturers  must  contract  six 
months  to  one  year  in  advance  for  raw  material,  without  guarantee, 
in  order  to  insure  continuous  supply  of  raw  material  to  keep  labor 
regularly  employed. 

LIVE  STOCK. 

Market  Committee  of  American  National  Live  Stock  Trade  Association. 

Association,  Denver,  Colo. 

Expressing  what  is  believed  to  be  opinion  of  stockmen,  feel  that 
majority  favor  open  market  without  artificial  restrictions. 

LUMBER. 

Deal  Saw  Mills  Co.,  Tuscaloosa,  Ala.  Manufacturers. 

Oppose  any  policy  of  fixing  prices. 
Paterson  &  Edey  Lumber  Co.,  Mobile,  A?a.  Manufacturers. 

Believe  that  the  law  of  supply  and  demand  should  rule  and  market 
not  made  subject  to  artificial  influence.  Practice  would  cause  ad- 
vance in  price  if  such  contracts  would  commit  buyer  to  one  year's 
requirements  and  preclude  possibility  of  his  being  sold  by  other  con- 
cerns, a  circumstance  that  would  encourage  competitors  to  raise 
prices  to  level  set  by  those  who  give  guarantee.  Lumber  manufac- 
turers can  not  give  such  protection  as  all  articles  contributing  to 
final  cost  are  bought  in  current  market  and  labor  expense  is  not 
stable. 
R.  W.  Wier  Lumber  Co.,  Houston,  Tex.  Jobbers. 

Buy  in  open  market  and  do  not  guarantee  customers  against  de- 
cline.    Such  practice  unsound  and  uneconomical. 

MACHINERY. 

Smith- Courtney  Co.,  Richmond,  Va.  Manufacturers  and  Jobbers. 

Believe  that  distributors  should  make  purchases  based  upon  their 
estimated  requirements  upon  which  they  should  calculate  fair  profit 
and  not  look  to  manufacturer  for  protection  should  prices  decline. 
Guarantee  encourages  speculative  buying. 


48 

MILLING. 

American  Corn  Millers'  Federation,  Chicago,  111.  Trade  Association. 

Following  resolution  unanimously  adopted : 

"  Opposed  to  practice  of  guarantee  in  prices  against  decline  and 
favor  such  legislation  as  will  prohibit." 

Arcady  Farms  Milling  Co.,  Chicago,  111.  Millers. 

Through  Winston,  Strawn  &  Shaw,  of  Chicago,  above  firm  ex- 
presses opinion  that  guarantee  is  against  the  public  interest,  tends 
to  keep  up  the  cost  of  living,  and  ought  to  be  discontinued.  Under 
such  competition  some  concerns  are  unwillingly  drawn  into  custom. 

El  Reno  Mil?  &  Elevator  Co.,  El  Reno,  Okla.  Millers. 

Practice  unfair  and  do  not  believe  followed  by  many  flour  millers. 
Wheat  not  bought  with  guarantee.     Consumers  interest  better  served 
if  guarantee  not  given. 
Kansas  Milling  Co.,  Wichita,  Kans.  Millers. 

Regards  as  bad  practice  and  not  practical  in  milling  and  grain 
business.  Millers  obliged  to  buy  grain  regardless  of  market's  ac- 
tion.    Guarantee  tends  to  hold  up  prices. 

Millers'  Milling  Co.,  Enid,  Okla.  Millers. 

In  general  terms  expresses  disapproval  of  practice  and  relates 
fact  that  as  Secretary  of  the  Oklahoma  Millers'  Association,  seven 
years  ago,  succeeded  in  getting  87  per  cent  of  Oklahoma  millers, 
60  per  cent  of  Kansas  and  Nebraska  and  37  per  cent  of  Texas  millers 
to  sign  agreement  that  practice  would  not  be  followed. 

Nebraska  Millers'  Association,  Omaha,  Nebr.  Trade  Association. 

Regards  as  a  pernicious  practice  amounting  to  gambling.  Should 
be  discountenanced'  by  Government.  Association  adopted  resolution 
January  20,  1920,  in  opposition  to  practice. 

Nowak  Milling  Co.,  Hammond,  Ind.  Millers. 

Not  able  to  purchase  raw  materials  with  such  guarantee  and 
therefore  opposed  to  granting  such  concession  to  its  customers.  Re- 
gards as  speculative  and  unsound.  However,  in  order  to  meet  such 
competition,  have  at  times  been  obliged  to  extend  courtesy.  States 
that  American  Feed  Manufacturers'  Association  at  last  convention 
agreed  to  discontinue  practice. 
Oklahoma  Millers'  Association,  Oklahoma  City,  Okla.  Trade  Association. 

With  95  per  cent  of  mills  represented,  Oklahoma  Millers'  Associa- 
tion adopted  resolution  in  opposition  to  practice. 

M.  C.  Peters  MiU  Co.,  Omaha,  Nebr.  Millers. 

A  malicious  practice,  substituted  for  the  exercise  of  better  buying 

judgment,  in  which  purchaser  has  all  the  advantage.     Manufacturers 


49 

of  by-product  mixed  feeds,  who  largely  set  their  prices,  have  fol- 
lowed the  practice  without  harm  to  business,  but  in  the  manufacture 
of  mixed  feed  products,  where  raw  ingredients  are  subject  to  supply 
and  demand,  practice  is  dangerous.  Manufacturer  who  guarantees 
obliged  to  arrange  for  excessive  supply  of  raw  materials,  creating 
artificial  demand  and  tending  to  lead  to  control  of  market. 

Southeastern  Millers'  Association,  Nashville,  Tenn.  Trade  Association. 

Regards  as  unfair  practice  and  has  tried  for  some  time  to  uproot 
evil. 

Westbrook  Grain  &  Milling  Co.,  Pine  Bluff,  Ark.  Millers. 

From  standpoint  of  good  business  practice  do  not  see  how  manu- 
facturer, regardless  of  financial  ability,  is  able  to  extend  guarantee 
unless  able  to  control  the  price  of  his  raw  materials. 

MOLASSES  AND  SIRUPS. 

Penick  &  Ford  (Ltd.),  New  Orleans,  La.  Manufacturers. 

Disapprove  of  such  method  of  merchandising  as  it  would  tend  to 
increase  rather  than  diminish  cost  to  consumer  and  would  place 
weapon  in  hands  of  large  manufacturers  to  the  detriment  of  smaller 
manufacturers. 

NUTS. 

Barnhart  Mercantile  Co.,  St.  Louis,  Mo.  Jobbers. 

Until  a  few  years  ago  guarantee  practice  was  general,  but  found 
to  be  pernicious.  National  Peanut  Cleaners  &  Shellers  Association 
adopted  rule  prohibiting  on  the  ground  that  such  guarantee  was  an 
unfair  method  of  doing  business.  Leads  jobbers  to  buy  in  large 
quantities  as  pure  speculation.  If  prices  advance,  they  secure  addi- 
tional profit;  and  if  prices  go  down,  the  original  dealer's  guarantee 
protects  them.  Large  orders  sometimes  bring  about  short  selling  by 
original  dealers,  projecting  them  into  the  buying  market  with  re- 
sult of  increase  in  prices,  which  increase  is  passed  on  to  the  whole- 
sale distributors  of  nuts.  Operates  to  distinct  advantage  of  dealers 
with  large  capital  and  extensive  lines  of  credit.  Creates  indisposi- 
tion on  part  of  guarantor  to  permit,  if  he  can  prevent,  a  recession  of 
prices. 

OIL  AND  PETROLEUM. 

Independent  Oil  Men's  Association,  Chicago,  111.  Trade  Association. 

Opinions  of  47  firms  have  been  submitted  to  this  Association,  32 
opposed  to  and  15  in  favor  of  the  practice.  Analysis  indicates  that 
the  small  dealer  is  almost  unanimously  against  the  custom.  Re- 
finers do  not  extend  such  privilege  to  small  jobber,  but  do  execute 


50 

such  contracts  with  large  jobbers,  thereby  placing  small  jobber  at 
disadvantage  not  only  in  the  buying  end,  but  also  in  the  selling  field. 
Practice  manifestly  unfair.  Enables  large  competitors  to  make 
clear  diagnosis  of  future  conditions.  Matter  ought  to  be  decided 
definitely  for  benefit  of  legitimate  business. 

National  Petroleum  Association,  Cleveland,  Ohio.  Trade  Association. 

Petroleum  industry  does  not  guarantee  against  decline  in  price. 
Does  not  regard  as  businesslike.  In  fairness  to  both  parties  to  con- 
tract, prices  should  be  subject  to  market  fluctuations. 

Puente  Oil  Co.,  Los  Angeles,  Calif.  Producers  and  Refiners. 

Guanrantee  pernicious  practice  and  not  in  keeping  with  good  busi- 
ness. Unless  seller  deals  in  speculative  commodity  and  able  at  times 
to  make  favorable  purchases,  unable  to  recoup  if  guarantee  is  ac- 
corded.   Emphatically  a  disadvantage  to  small  operators. 

Union  Oil  Co.  of  California.  Producers  and  Refiners. 

Does  not  give  guarantee.  Business  done  on  annual-contract  basis 
at  specified  price,  subject  to  no  readjustment. 

Waverly  Oil  Works  Co.,  Pittsburgh,  Pa.  Refiners. 

A  demoralizing  practice,  which  gives  potent  weapon  to  big  manu- 
facturers, particularly  those  controlling  raw  materials,  to  use  against 
small  manufacturers  who  are  dependent  on  raw  material  at  market 
prices. 

OVERALLS. 

Sweet-Orr  &  Co.  (Inc.),  New  York,  N.  Y.  Manufacturers. 

Guarantee  increases  expense  of  distribution,  encourages  jobbers  to 
buy  speculatively,  and  creates  shortage  in  manufacturing  market. 

PAINT  AND  VARNISH. 

Boydell  Bros.  White  Lead  &  Color  Co.,  Detroit,  Mich.  Manufacturers. 

Does  not  approve  guarantee  and  tries  to  obviate  necessity  for  in- 
auguration of  such  practice  by  having  salesmen  caution  customers 
not  to  overload. 
Eberson-Iindsley  Paint  Co.,  St.  Louis,  Mo.  Manufacturers. 

Guarantee  only  to  date  of  shipment. 
Louisville  Varnish  Co.,  Louisville,  Ky.  Manufacturers. 

Regards  practice  as  unsound  but  makes  no  further  statement. 
Benjamin  Moore  &  Co.,  St.  Louis,  Mo.  Manufacturers. 

Regards  as  unfair  competition  and  believes  should  be  prohibited  by 
law,  as  neither  seller  nor  buyer  gains  anything. 

O'Brien  Varnish  Co.,  South  Bend,  Ind.  Manufacturers. 

Imposes  assumption  of  uncertain  liability  and  therefore  makes 
accruate  calculations  impossible.    At  all  times  customers  average  two 


51 

months'  supplies  of  their  paints  on  hand,  representing  about  one- 
sixth  of  annual  production,  a  proportion  too  large  for  taking  such 
burden.  Expense  of  guarantee  could,  of  course,  be  absorbed  in  selling 
price,  but  do  not  believe  such  practice  fair  to  consumers. 

Pecora  Paint  Co.,  Philadelphia,  Pa.  Manufacturers. 

Detrimental  to  business  generally,  and  even  though  manufacturer 
would  be  protected  on  some  raw  materials  he  had  purchased  there 
would  be  some  portion  of  his  stock  not  subject  to  guarantee,  which 
he  would  be  obliged  to  sell  at  lower  sum  than  justified  by  price  at 
which  purchased.  As  applied  to  guarantee  against  own  reduction  on 
undelivered  part  of  contract,  believe  would  be  fair  to  so  protect 
jobber. 

Sewall  Paint  &  Glass  Co.,  Kansas  City,  Mo.  Manufacturers. 

Can  only  result  in  unsettling  busines. 
Sherwin-Williams  Co.,  Cleveland,  Ohio.  Manufacturers. 

Expresses  opinion  that  guarantee  is  economically  unsound. 
Robert  Shoemaker  &  Co.,  Philadelphia,  Pa.  Manufacturers. 

Beyond  statement  that  is  opposed  to  practice  does  not  make  com- 
ment. 

True-Tagg  Paint  Co.,  Memphis,  Tenn.  Manufacturers. 

Opposed  to  practice  but  makes  no  other  comment. 
Wadsworth,  How  land  &  Co.  (Inc.),  Boston,  Mass.  Manufacturers. 

Price  guarantee  not  founded  on  sound  business  principles  and  op- 
erates to  force  competitors  to  resort  to  same  practice. 

PAPER. 
Eaton-Dikeman  Co.,  Lee,  Mass.  Manufacturers. 

Do  not  guarantee  prices.  At  present  do  not  sell  for  delivery  be- 
yond 30  days. 

Robert  Gair  Co.,  Brooklyn,  N.  Y.  Manufacturers. 

Guarantee  does  not  harmonize  with  rudiments  of  business.  Can 
not  conceive  of  seller  pursuing  practice  unless  possessed  of  gambling 
temperament. 

Hartford  City  Paper  Co.,  Hartford  City,  Ind.  Manufacturers. 

As  manufacturers  can  not  control  prices  of  raw  materials  and  as 
jobbers  would  object  to  contract  permitting  manufacturer  to  increase 
price;  believe  practice  too  one-sided  to  be  sound.  Manufacturing 
concern  not  granting  concession  could  deliberately  quote  lower  price 
to  jobber  in  order  to  disturb  relations  between  manufacturer  who 
guarantees  and  his  customer. 

Lawrence  Paper  Manufacturing  Co,  Lawrence,  Kans.  Manufacturers. 

Believes  unfair  practice  and  no  need  for  same  in  their  line. 


52 

John  Strange  Paper  Co.,  Menasha,  Wis.  Manufacturers. 

Practice  unfair  and  unbusinesslike. 

PAPER  BOXES. 

Columbia  Box  Board  Mills  (Inc.),  Chatham,  N.  Y.  Manufacturers. 

Believes  a  great  abuse.    At  variance  with  sound  business  princi- 
ples and  works  hardship  upon  manufacturers.    Expresses  hope  that 
practice  may  be  declared  unlawful. 
Continental  Paper  Co.,  Bogota,  N.  J.  Manufacturers. 

Believes  absurd  practice  and  hopes  Commission  will  rule  against. 
Gardner  &  Harvey  Co.,  Middletown,  Ohio.  Manufacturers. 

Do  not  believe  sound  policy,  as  in  time  of  great  decline  might 
mean  bankruptcy  for  concerns  extending  such  concession.    Not  able 
to  buy  its  raw  material  on  such  basis. 
Smeallie  &  Voorhees,  Amsterdam,  N.  Y.  Manufacturers. 

Manufactures  paper  box  boards.     Expresses  opposition  to  guar- 
antee but  does  not  give  any  reasons. 
Western  Paper  Box  Co.,  San  Francisco,  Calif.  Manufacturers. 

Can  not  and  does  not  give  guarantee.  Most  orders  taken  subject 
to  price  at  time  of  delivery. 

PAPER  ROOFING. 

Richardson  Paper  Co.,  Cincinnati,  Ohio.  Manufacturers. 

One  of  the  worst  evils  in  American  business.  Nothing  could 
induce  us  to  resort  to  such  weak  policy,  although  very  trying  to 
meet  such  competition.  During  times  of  brisk  demand  practice 
not  so  injurious,  but  when  output  exceeds  current  demand  injects 
artificial  influence  in  market.  Causes  waste  of  material  and  is  dis- 
astrous to  wage  earners. 

PEANUTS. 

National  Peanut  Cleaners  &  Shelters'  Association,  Trade  Association. 

Suffolk,  Va. 

Association  adopted  resolution  in  opposition  to  guarantee. 

PLUMBERS'  SUPPLIES. 

N.  O.  Nelson  Manufacturing  Co.,  Memphis,  Tenn.  Manufacturers. 

Manufacturers  should  not  be  called  upon  to  give  such  protection, 
as  their  raw  materials  are  purchased  in  open  market.  Unless  manu- 
facturers able  to  secure  similar  protection  results  in  loss  to  them. 
Do  not  believe  practice  results  in  saving  to  consumers.  Encourages 
speculative  buying. 


53 

SALT. 

Diamond  Crystal  Salt  Co.,  St.  Clair,  Mo.  Manufacturers. 

Experience  indicates  bad  method  of  doing  business.  Would  create 
liability  on  which  there  is  no  way  to  estimate  and  would  result  in 
careless  buying. 

Union  Salt  Co.,  Cleveland,  Ohio.  Manufacturers. 

Except  as  applied  to  a  concern's  own  prices  and  only  to  date  of 
shipment,  believe  practice  a  dangerous  one,  especially  as  it  affects 
smaller  concerns. 

Worcester  Salt  Co.,  New  York,  N.  Y.  Manufacturers. 

If  subsequent  to  sale  to  jobber,  prices  declined  before  shipment  of 
order  had  been  completed,  give  jobber  advantage  of  reduction  to 
enable  him  to  meet  competitor,  but  think  very  poor  business  policy 
to  rebate  for  goods  on  hand. 

SAWS. 

E.  C.  Atkins  &  Co.,  Indianapolis,  Ind.  Manufacturers. 

Do  not  make  shipments  with  guarantee.  This  method  exceedingly 
dangerous,  unfair,  and  unbusinesslike.  During  period  of  price  ad- 
vances jobbing  trade  and  dealers  take  advantage  of  advance.  Profit 
secured  in  that  manner  sufficient  to  reimburse  for  losses  on  falling 
market.  Manufacturer  in  no  position  to  stand  as  buffer  against  loss. 
If  manufacturer  guaranteed  unsold  stocks  in  hands  of  dealers,  lack 
of  caution  on  part  of  dealers  would  involve  manufacturers  in  untold 
obligations.  Principle  wasteful  and  encourages  loose  business  prac- 
tices. Practice  operates  against  manufacturers  of  small  resources 
und  against  those  who  have  more  costly  labor  understandings. 

SHOES,  RUBBER. 

Converse  Rubber  Shoe  Co.,  New  York  City,  N.  Y.  Manufacturers. 

Believes  guarantee  violates  fundamental  business  principle.  After 
title  to  goods  passes  from  seller  to  buyer  does  not  believe  price  read- 
justment should  be  made.  Produces  careless  buying  and  ties  up  un- 
necessarily large  stocks  in  hands  of  dealers. 

SOAP. 

West  Coast  Soap  Co.,Oakland,  Calif.  Manufacturers. 

Have  recently  withdrawn  such  protection  and  believe  practice 
should  be  prohibited  by  law.  Encourages  jobbers,  at  expense  of 
manufacturers,  to  make  heavy  purchases  with  speculative  intent,  and 
the  existence  of  such  large  stocks  under  guarantee  acts  as  a  partial 
bar  to  new  enterprises  coming  into  the  market.  This  effect  upon  new 
enterprises  constitutes  stifling  of  competition. 


54 

SOLDER. 

SoMer  Manufacturers'  Association,  New  York,  N.  Y.  Trade  Association. 

At  last  general  meeting  of  above  association,  members  expressed 
opinion  that  the  guarantee  against  decline  constituted  a  pernicious 
practice  and  resulted  in  unfair  competition. 

TACKS. 
Atlas  Tack  Co.,  Fairhaven,  Mass.  Manufacturers. 

Our  belief  that  practice  detrimental  to  public  interests.  Tends  to 
high  prices  and  buyers  so  protected  order  beyond  needs  and  make 
no  effort  to  secure  lower  prices.  Where  this  practice  is  in  vogue 
manufacturers  rarely,  if  ever,  make  purchaser  voluntary  quotations. 
Manufacturers  who  give  guarantee  resist  in  every  way  decline  in 
prices.  Absence  of  guarantee  brings  greater  caution  and  intelligence 
in  buying. 

Roberts  Corporation,  Whitman,  Mass.  Manufacturers. 

Regards  as  unfair  competition  and  does  not  practice. 

TIN  PLATE. 

Association  of  Tin  Plate  Manufacturers,  Pittsburgh,  Pa.  Trade  Association. 

After  thorough  discussion,  officers  of  this  association  instructed 
that  it  is  the  firm  conviction  of  its  members  that  practice  is  vicious 
and  detrimental.  No  good  reason  why  manufacturer  should  assume 
further  responsibility  after  making  sale  in  good  faith  and  on  ac- 
ceptable terms.  Practice  is  inimical  to  best  interests  of  those  willing 
to  back  business  judgment  with  their  own  money.  It  places  premium 
upon  ignorance,  inexperience,  and  incompetency,  and  encourages  ex- 
pansion beyond  financial  resources.  No  question  but  practice  en- 
courages speculation.  Believe  it  encourages  newcomers  to  attain  in 
brief  time  position  it  has  taken  others  years  to  attain. 

Carnahan  Tin  Plate  &  Sheet  Co.,  Canton,  Ohio.  Manufacturers. 

A  disastrous  habit,  sometimes  resulting  in  loss  of  dividends  to 
stockholders  of  manufacturing  concerns.  Successful  business  ought 
to  be  on  solid  foundation  and  not  bolstered  up  through  guarantee. 

National  Association  of  Sheet  &  Tin  Plate  Manufacturers,       Trade  Association. 
Pittsburgh,  Pa. 

By  resolution  adopted  Januarj'  6,  1920,  this  association  went  on 
record  in  opposition  to  guarantee,  expressing  belief  that  it  placed 
undue  burden  on  seller,  resulting  in  overbuying  and  speculation  on 
part  of  purchaser,  undermines  confidence,  is  unfair  competition,  not 
good  business  practice,  and  subversive  of  the  fundamental  principle 
of  contracts,  and  generally  harmful.  (Submitted  pamphlet  contain- 
ing written  expression  from  some  of  its  members  in  opposition  to 
practice.) 


55 

TIRES. 

Hawkeye  Tire  &  Rubber  Co.,  Des  Moines,  Iowa.  Manufacturers. 

Now  executes  contracts  with  guarantee  for  period  of  90  days  from 
date  of  invoice.  Guarantee  encourages  reckless  buying  and  tends 
to  hold  up  prices.  Such  contracts  are  a  contingent  liability  to  man- 
ufacturer, and  whatever  losses  ensue  must  be  taken  into  cost  of  pro- 
duction. Stifles  competition  to  the  extent  that  old  and  powerful 
companies  may  exclude  prospective  newcomers  from  the  field.  For 
illustration:  If  price  declines  and  rebate  is  given  on  goods  sold  by 
manufacturer  during  the  year  1918,  and  such  goods  are  still  on  hand 
in  1919,  rebate  could  properly  be  treated  as  a  loss  accruing  during 
the  conduct  of  business  in  1918,  and  would  therefore  be  subject  to 
an  amended  return  and  claim  for  refund  of  tax,  entailing  a  loss  to 
the  Government.  Recent  decline  in  tire  prices  was  openly  talked 
about  in  the  trade,  and  charged  to  the  intention  of  larger  companies 
displacing  smaller  ones.  If  practice  is  prohibited  will  have  imme- 
diate effect  of  reducing  prices  and  toning  business  generally. 

Republic  Rubber  Co.,  Youngstown,  Ohio.  Manufacturers. 

Practice  injurious  to  trade  and  carries  no  benefit  for  public. 
Lever  by  which  large  manufacturers  may  assume  control  of  market 
to  disadvantage  of  smaller  units.  Tremendous  rebates  paid  in  past 
a  heavy  burden  upon  business,  an  obligation  too  great  for  small 
manufacturers  to  bear. 

TYPEWRITER  RIBBONS. 

Bestwall  Manufacturing  Co.,  Chicago,  111.  Manufacturers. 

Manufacturer  forced  into  position  of  maintaining  high  prices, 
even  against  his  wish.  Public  suffers  from  such  guarantee.  Prac- 
tice encourages  speculation  on  part  of  jobbers. 

MISCELLANEOUS. 

Geo.  M.  Bentley  Co.,  Boston,  Mass.  Manufacturers'  Agents. 

Regards  as  economic  waste  and  demoralizing  to  proper  conduct  of 
business.  The  amount  guaranteed  is  actually  added  to  cost  of  pro- 
duction and  passed  on  to  consumer.  Encourages  merchants  to  buy 
for  speculative  purposes  and  does  not  call  for  exercise  of  good  busi- 
ness judgment  in  fixing  volume  of  purchases.  Also  causes  discrimi- 
natory favors  to  important  distributors  through  the  payment  of 
rebates  in  excess  of  sum  actually  due  them.  Experience  indicates 
this  latter  a  prevalent  custom.  Exerts  a  demoralizing  influence  on 
business  ethics.  Practice  frequently  delays  reduction  of  prices  and 
public  suffers  to  such  extent.  Expresses  hope  that  custom  may  be 
made  illegal  in  view  of  trade's  inability  to  compel  such  reform. 


56 

E!ggren  Bros.  &  Co.,  Salt  Lake  City,  Utah.  Wholesalers. 

Practice  unfair  and  should  be  prohibited  by  law. 

Fred  Fear  &  Co.,  New  York,  N.  Y.  Manufacturers  of  Novelties. 

Practice  unjust  to  manufacturers  and  operates  to  advantage  of 
large  corporations  who  carry  big  surplus  and  can  afford  to  extend 
guarantee.  Encourages  jobbers  to  speculate  instead  of  basing  pur- 
chases on  best  judgment. 

John  W.  Hall,  Chicago,  111.  Manufacturer's  Agent. 

Sells  lard  compound ;  does  not  give  guarantee  and  finds  it  difficult 
to  sell  against  concerns  of  large  capital  that  are  able  to  accord  this 
concession. 

Lamp  Standardization  Exchange,  New  York,  N.  Y.  Trade  Association. 

Hy  vote  of  members  of  above-named  exchange  this  organization 

has  gone  on  record  as  opposed  to  guaranteeing  against  price  decline. 

Marden,  Orth  &  Hastings  Corporation,  Manufacturers  and  Exporters. 

New  York,  N.  Y. 

Have  had  to  contend  with  this  vicious  practice  for  years  and  be- 

leive  should  be  declared  illegal. 

National  Federation  of  Construction  Industries,  Trade  Organization. 

Philadelphia. 

Practice  was  formally  rejected  by  this  organization  as  imprac- 
ticable. 

Sulpho-Napthol  Co.,  Boston,  Mass.  Manufacturers. 

Unsound  economically  and  an  encouragement  to  overbuy,  creating 
artificial  shortage  in  manufacturer's  market.  However,  in  seasonal 
goods,  can  see  necessity  for  such  practice. 


NONCOMMITTAL  REPLIES. 


CONTAINERS. 


Columbia  Package  Co.,  Memphis,  Tenn.  Manufacturers. 

Does  not  pursue  practice.     Sells  at  price  on  date  of  delivery. 

COTTON  MILLS. 

Fuller  E.  Callaway,  La  Grange,  Ga.  Manufacturers'  Agent. 

Cotton  mills  we  represent  do  not  guarantee  prices,  in  belief  that 
it  is  detrimental  in  periods  of  inflation.  When  trade  is  dull,  in  cer- 
tain lines  of  business,  it  may  be  expedient  to  grant  such  concession. 
Believe  to  be  a  matter  that  should  be  determined  by  heads  of  each 
particular  business. 

HARDWARE. 

Todd-Donigan  Iron  Co.,  Louisville,  Ky.  Jobbers. 

Do  not  purchase  with  guarantee.  Manufacturers  stopped  practice 
long  since. 

HARDWOOD. 

Michigan  Hardwood  Manufacturers'  Association,  Trade  Association. 

Cadillac,  Mich. 

Do  not  believe  practice  resorted  to  by  hardwood  manufacturers 
nor  is  it  believed  to  be  practicable. 

Northern  Hemlock  &  Hardwood  Manufacturers'  Associ-         Trade  Association, 
ation,  Oshkosh,  Wis.     . 

Manufacturers  in  this  industry  do  not  give  such  guarantee  and 
association  not  interested  in  subject. 

LIVE  STOCK. 

Omaha  Livestock  Exchange,  Omaha,  Nebr. 

Practice  not  followed  in  their  business. 

MACHINERY. 

Mill  &  Mine  Supply  Co.,  Akron,  Ohio.  Jobbers. 

Practice  followed  in  lines  where  jobbers  must  be  encouraged  to 
carry  adequate  stocks  to  care  for  trade.  Loss  falls  upon  ultimate 
consumers. 

(57) 


58 

PAPER. 

Philadelphia  Paper  Manufacturing  Co.,  Philadelphia,  Pa.  Manufacturers. 

Never  found  necessary  to  sell  goods  on  such  basis  and  practice  not 
followed  in  this  industry. 

STOVES. 

Michigan  Stove  Co.,  Detroit,  Mich.  Manufacturers. 

Does  not  give  guarantee.  Recently  its  salesmen  have  been  per- 
mitted to  take  orders  and  assure  delivery  at  reasonable  advance  date 
at  specified  prices. 

TEXTILES. 

American  Textile  Co.,  Atco,  Ga.  Manufacturers. 

Have  never  guaranteed  prices.  All  contracts  at  fixed  price  whether 
for  spot  or  future  delivery. 

VULCANIZED  FIBER  PRODUCTS. 
Campbell  Fibre  Co.,  Stanton,  Del.  Manufacturers. 

Does  not  reply  to  specific  inquiry,  but  expresses  following  view: 
That  Government  should  regulate  all  prices.  Predicates  this  view 
upon  observation  that  competition  at  times  becomes  destructive. 

WIRE  ROPE. 

John  A.  Roebling's  Sons  Co.,  Trenton,  N.  J.  Manufacturers. 

Our  products  mainly  furnished  on  special  order,  not  requiring  the 
maintenance  of  stocks  either  in  our  own  possession  or  in  hands  of 
agents. 


FAVORABLE  REPLIES,  WITH  RESERVATIONS. 


AGRICULTURAL  IMPLEMENTS. 

Thomas  Manufacturing  Co.,  Springfield,  Ohio.  Manufacturers. 

When  trade  conditions  unsettled  believe  users  of  raw  material 
should  be  protected  against  decline,  as  applied  to  undelivered  por- 
tion of  any  contract.  Facilitates  continuous  operation  of  factory  and 
gives  manufacturer  more  intelligent  look  into  the  future.  In  normal 
times  no  need  for  such  practice. 

CRANBERRIES. 

American  Cranberry  Exchange,  New  York,  N.  Y.  Jobbers. 

There  is  a  custom  among  shippers  and  manufacturers  of  perishable 
or  nonperishable  products  to  guarantee  prices.  Believe  practice 
tends  to  stabilize  market,  increase  volume  of  business,  and  estab- 
lish confidence,  also  lessening  spread  of  prices  between  producer  and 
consumer.  Dealers  can  work  on  closer  margin,  but  if  subject  to 
loss  due  to  decline  of  market  they  are  required  to  get  sufficient  profit 
to  equal  loss  that  might  occur  in  market  decline.  On  other  hand, 
observation  is  that  shippers  and  manufacturers  generally  establish 
higher  prices  to  enable  them  to  guarantee  price.  Our  association 
deals  entirely  with  fresh  fruit  and  can  not  guarantee  against  decline. 
We  try  to  fix  price  that  will  consume  whole  crop  while  in  prime 
condition. 

HARDWARE. 

Dunlap  Hardware  Co.,  Macon,  Ga.  Jobbers. 

At  present  time  on  account  of  delayed  shipments  believe  that  man- 
ufacturer should  accord  guarantee  to  date  of  shipment,  but  do  not 
stress  need  in  normal  times. 

Fox  Bros.  Hardware  Co.,  Pine  Bluff,  Ark.  Jobbers 

Seasonal  goods  should  be  purchased  under  guarantee,  but  do  not 
see  how  manufacturer,  as  a  rule,  could  give  guarantee  in  face  of  ad- 
vancing market. 

(59) 


60 

Teague  Hardware  Co.,  Montgomery,  Ala.  Jobbers. 

Favors  in  abnormal  times.  In  normal  times  would  not  favor  guar- 
antee, but  in  these  abnormal  times  believe  that  guarantee  is  justified 
in  view  of  unusual  fluctuations,  long  delays  in  transit,  and  shortage 
of  production. 

MACHINE  TOOLS. 

National  Machine  Tool  Builders'  Association,  Trade  Association. 

Worcester,  Mass. 

Following  the  armistice,  fearing  disturbed  business  conditions 
some  jobbers  could  not  be  encouraged  to  buy  without  guarantee, 
which  did  not  extend  beyond  six  months.  Practice  is  not  now  fol- 
lowed in  this  trade  and  is  not  believed  to  be  good  business. 

PAINT. 

Lowe  Bros.  Co.,  Dayton,  Ohio.  Manufacturers. 

Do  not  approve  except  as  applied  to  goods  sold  for  future  delivery, 
where  manufacturer's  convenience  is  served  by  permitting  more 
continuous  and  economical  factory  operation.  By  this  means  job- 
bers are  assured  adequate  stocks.  Paint  is  a  seasonal  commodity 
and  we  feel  that  the  jobber  should  be  protected,  at  least  until  the 
time  when  his  demand  commences.  As  applied  to  commodities  the 
price  of  which  can  not  be  controlled  by  manufacturers  the  practice 
would  be  dangerous  to  manufacturers,  unfair  to  competitors  who 
did  not  give  guarantee,  and  would  encourage  reckless  buying.  On 
exclusive  agency  articles  do  not  believe  practice  would  result  in  harm. 

WINDMILLS— GAS  ENGINES. 

Baker  Manufacturing  Co.,  Evansville,  Wis.  Manufacturers. 

Secures  guarantee  on  raw  materials.  Price  guarantee  encourages 
purchase  of  adequate  future  supply  raw  materials  and  makes  for 
capacity  operation  of  plant.  If  such  protection  were  not  afforded 
doubt  that  season's  requirements  would  be  purchased  in  one  order. 

The  Baker  Co.  has  not  extended  similar  privilege  to  its  customers, 
indicating  that  their  supply  is  at  all  times  sufficient  to  accomplish 
the  prompt  filling  of  orders. 


ALPHABETICAL  LIST  OF  INDIVIDUALS,  FIRMS,  CORPORATIONS,  AND 
COMMERCIAL  AND  TRADE  ASSOCIATIONS. 


Replies  favoring  guarantee  against  price  decline. 

Page. 

Advance-Ruinely  Co 26 

Ainslie-Martin  Co.  (Inc.) 20 

Albany  Hardware  &  Iron  Co 20 

Allen  &  Jemison  Co 20 

Allied  Machinery  Co.  of  America 28 

American  Seeding  Machine  Co 7 

American  Wire  Fabrics  Co ; 33 

Anniston  Hardware  Co 20 

Anthony  Wholesale  Grocery  Co 11 

Appleton  Mfg.  Co 7 

Armstrong  Paint  &  Varnish  Works 29 

Atlanta  Wholesale  Grocers 11 

Avery  &  Sons  Co.,  D.  F 7 

Babcock,  Hinds  &  Underwood  (Inc.) 27 

Baker  Co.,  A.  D 7 

Baker  Food  Products  Co 10 

Baker  &  MacDowell  Hardware  Co 20 

Baldwin  &  Co.,  A 20 

Banks  Supply  Co ,. 28 

Barker,  Rose  &  Clifton  Co 21 

Barnes  Grocer  Co 11 

Beckman  Co 35 

Bedford,  E.  T 29 

Beeman  Tractor  Co 7 

Bell-Wayland    Co 11 

Benjamin  Electric  Mfg.  Co 27 

Bey  &  Co.,  John  N ^ 11 

Blaul's  Sons  Co.,  John 12 

Bloomington  Wholesale  Grocery  Co 12 

Boniface,  Weber  &  Allen 12 

Bright  &  Co 9 

Bronson  &  Townsend  Co 21 

Brown-Rogers  Co 21 

Brown-Wales  Co 26 

Buckley-Terry  Co 12 

Bushnell  Co.,  F.  C 12 

Calhoun  Grocery  Co 12 

California  Walnut  Growers'  Association 35 

Callahan  Co.,  C 12 

Carey  Co.,  The  Philip 33 

(61) 


Page. 

Case  Plow  Works  Co w 7 

Challoner  Co 7 

Chapman  &  Banks  Co 21 

Charlotte  Hardware  Co 21 

Citizens'  Gas  Co 11 

Cleveland  &  Sons,  William  D 12 

Clifton  Manufacturing  Co 34 

Cole  Manufacturing  Co 29 

Columbia  Tool  Steel  Co 26 

Columbus  Grocery  Co 12 

Colvin,  Atwell  &  Co 13 

Conneaut  Shovel  Co.,  The 34 

Cooper-Dickinson  Grocer  Co 13 

Corpus  Christi  Hardware  Co 21 

Crancer  Hardware  Co 21 

Crook,  J.  W — — l— 13 

Crown  Overall  Manufacturing  Co 29 

Crumley-Sharp  Hardware  Co 21 

Cyler  &  Mohler ' 33 

Dabney   Bros 13 

Deere  &  Co 8 

Dempster  Mill  Manufacturing  Co S 

De  Soto  Pal&t  Manufactring  Co 30 

Deutz  &  Bro.,  A 21 

Dinkins-Davidson  Hardware  Co 21 

Doherty  Hardware  Co.  (Ltd.) 22 

Douglas  &  Evans u 35 

Estes  Lumber  Co 27 

Fairbanks  Co 36 

Farrand,  George  E 36 

Faucette  Co 13 

Federated  Merchants 13 

French  &  Hecht 26 

Gilbert  Grocery  Co 13 

Gloster  Lumber  Co 28 

Goddard  Grocer  Co 13 

Goodell-Pratt  Co , 26 

Grafe  Co.,  A 13 

Griffin  Cantrell  Hardware  Co 22 

Griffin-Goodner  Grocery  Co 14 

Griffin  Manufacturing  Co 22 

Hamersley  Manufacturing  Co 31 

Hardwicke-Etter  Co 29 

Harper  &  Mclntire  Co 22 

Harron,  Rickard  &  McCone 28 

Havana  Metal  Wheel  Co 26 

Heisig  &  Norvell 14 

Herschel  Manufacturing  Co.,  R 8 

Houston  Co.,  James  W 14 

Huey  &  Philip  Hardware  Co _ 22 


63 

Face. 

Illinois  Wholesale  Grocers'  Association 14 

Illinois  Wire  &  Manufacturing  Co 26 

Indiana  Wholesale  Grocers'  Association 14 

Interstate  Hardware  &  Supply  Co 22 

Iowa-Nebraska-Minnesota  Wholesale  Grocers'  Association 15 

Jett  &  Wood 15 

Jones  Co.,  A.  B 36 

Keith,  Simmons  &  Co 22 

Kelley  Axe  Manufacturing  Co 36 

Kentucky  Wholesale  Co 15 

Kerr  &  McCord 36 

Knapp  &  Spencer '__. 23 

Krnkauer,  Zork  &  Moye's  Successors  (Inc) 23 

Lakewood  Engineering  Co '. : 36 

Lansing  Silo  Co , 34 

Lauderdale  Cotton  Mills 9 

Lee  Hardware  Co.   (Ltd.) 23 

Lewis  Mill  Supply  Co 23 

Libby,  C.  A 36 

Lockett  &  Co.,  A.  M 28 

Los  Angeles  Grocery  Co 15 

Louisville  Paint,  Oil  &  Varnish  Club 30 

Lynd,  J.  E 15 

McClung  Co.,  C.  M 23 

McClure   Co j 34 

McLenden  Hardware  Co 23 

Mahon  Co.,  Samuel 15 

Malone  &  Hyde 15 

Martin  Steel  Products  Co 26 

Mennen  Co . 34 

Miller  Co.,  C.  M 16 

Monroe  Hardware  Co . 23 

Moore  Dry  Goods  Co.,  Wm.  R 10 

Moore  Plow  &  Implement  Co 8 

Moore-Shenkberg  Grocery  Co 16 

Moore's  Sons  (Inc.),  A.  P 16 

Mountain  Grove  Creamery 25 

Mullen  Co.,  William  D 16 

Murchison  &  Co.,  J.  W 23 

National  Grocery  Co 16 

National  Wholesale  Druggists'  Association 9 

Nevin  Co.,  T.  H 30 

New  England  Chain  Works 27 

New-Way  Motor  Co 11 

Niles  &  Scott  Co 27 

Nixon  Hardware  Co 23 

Norton  Hardware  Co 23 

Odell  Hardware  Co 24 

Oklahoma  Wholesale  Grocers'  Association , „  16 


64 

Page. 

Oliver-Finne  Co 10 

Oppenheim,  Oberndorf  &  Co 33 

Owensboro  Wagon  Co 8 

Pacific  Pipe  &  Supply  Co 33 

Patterson  Mercantile  Co.,  L 17 

Penick-Hughes   Co 24 

Perfect  &  Co.,  A.  H 17 

Powell-Sanders  Co 17 

Purinton  &  Smith 28 

Queen  City  Supply  Co 28 

Radford  Grocery  Co.,  J.  M 17 

Rapides  Grocery  Co.  (Inc.) 17 

Reeve,  M.  E 17 

Richardson  &  Co.,  W.  H 24 

Ridenour-Baker  Grocery  Co 18 

Riggs,  J.  H 18 

Roanoke  Hardware  Company  (Inc.) 24 

Rowe  Co.,  J.  W 18 

Russell  Hardware  Co 24 

St.  Louis  Iron  Store  Co 27 

Sales  Extension  Co 18 

Saunders  Sons  Co 18 

Schmidt  &  Ault  Paper  Co 31 

Scovel  Iron  Stove  Co 37 

Seidlitz  Varnish  Co 30 

Sentney  Wholesale  Grocery  Co 18 

Sloane  &  Co.,  Samuel 33 

Smith,  Kline  &  French  Co 9 

Southern  Georgia  Grocery  Co 19 

Southern  Plow  Co 8 

Southern  Supply  &  Machinery  Dealers'  Association 28 

Southern  Wholesale  Dry  Goods  Association 10 

Sterling  Hardware  Co 24 

Stone  Tool  &  Supply  Co 27 

Straud-Dockum  Grocery  Co 19 

Street  &  Co.,  E.  S 19 

Swayne,  Robinson  &  Co 8 

Swind  Machinery  Co 28 

Tatum  Hardware  Co.,  W.  M 24 

Thompson-Miller  Hardware  Co 24 

Thum  Co.,  O.  &  W 10 

Tidewater  Wholesale  Grocers'  Association 19 

Tips  Co.,  Walter 25 

Towers  &  Sullivan  Manufacturing  Co 8 

Townley  Metal  &  Hardware  Co 25 

Tucker  &  Goodwin 19 

Tullis-Gamble  Hardware  Co „ 25 

Tyler  Grocery  Co 19 

Tyler  &  Simpson  Co 19 


65 

Page 

Ullman,  Stern  &  Krausse 19 

U.  S.  Gutta  Percha  Paint  Co 19 

U.  S.  Wind  Engine  &  Pump  Co 37 

Wagner  Hardware   Co 25 

Warrensburg  Canning  Co 9 

Wash,  Davie  &  Co 19 

Watkins-Cottrell  Co 25 

Weed  &  Co.,  J.  D 25 

Western  Steel  &  Iron  Works 27 

Wiles  Grocery  Co 20 

Wilson  Hardward  Co.,  E.  L 25 

Wimberly  &  Thomas  Hardware  Co 25 

Winona  Wagon  Co S 

Woolsey  Paint  &  Color  Co.,  C.  A 31 

Writing  Paper  Manufacturers'  Association 31 

Replies  opposing  guarantee  against  price  decline. 

Almond  Manufacturing  Co.,  T.  R 45 

American  Coffee  Co 40 

American  Corn  Millers'  Federation 48 

American  National  Live  Stock  Association,  Market  Committee  of 47 

Arcady  Farms  Milling  Co 48 

Aspegren  &   Co 42 

Association  of  Tin  Plate  Manufacturers 54 

Atkins  &  Co.,  E.  C 53 

Atlanta  Refining  &  Manufacturing  Co 42 

Atlantic  Dyestuff  Co 42 

Atlas  Cereal  Co 39 

Atlas  Tack  Co 54 

Baker- Vawter  Co 42 

Barnhart  Mercantile  Co 49 

Bentley  Co.,  Geo.  M 55 

Berkshire  Knitting  Mills 44 

Bestwall  Manufacturing  Co 55 

Black,  Varian  &  Simon  (attorneys  for  certain  glycerine  manufacturers) —  43 

Bolt,  Nut  &  Rivet  Institute 45 

Boydell  Bros.,  White  Lead  &  Color  Co 50 

Butterworth-Judson  Corporation 39 

Carnahan  Tin  Plate  &  Sheet  Co 54 

Champion  Tool  Co 38 

Coleman-Clark  Grocery  Co 43 

Columbia  Box  Board  Mills  (Inc.) 52 

Columbian   Rope   Co 41 

Continental  Paper  Co 52 

Converse  Rubber  Shoe  Co 53 

Cooper  Co.,  C.  W 43 

Cotton  Thread  Manufacturers'  Exchange 41 


66 

Paga. 

Deal  Saw  Mills  Co 47 

Detroit  Range  Boiler  &  Steel  Barrel  Co 45 

Diamond  Crystal  Salt  Co 53 

Dikenian  Manufacturings  Co 45 

Drill  &  Reamer  Society 45 

Eagle  &  Phenix  Mills 41 

Eaton-Dikeman    Co 51 

Eberson-Lindsley  Paint  Co 50 

Eclipse  Manufacturing  Co 38 

Elggren  Bros.  &  Co 56 

El  Reno  Mill  &  Elevator  Co 48 

Fageol   Motors  Co 38 

Fear  &  Co.,  Fred 56 

Gair  Co.,  Robert 51 

Gardner  &  Harvey  Co 52 

Hagy  Waste  Works,  J.  Milton 41 

Hall,  John  W 56 

Hartford  City  Paper  Co 51 

Hawkeye  Tire  &  Rubber  Co 55 

Haywood  Alfalfa  Warehouse  Co 38 

Henkle  &  Joyce  Hardware  Co 43 

Hudson  Motor  Specialties  Co 38 

Independent  Oil  Men's  Association 49 

Johnson  Electric  Supply  Co 42 

Kansas   Milling   Co 48 

Kingwell  Bros 39 

Knit  Goods  Manufacturers  of  America 46 

Lamp  Standardization  Exchange 56 

Lawrence  Paper  Manufacturing  Co 51 

Lorick  &  Lowrance 43 

Louisville  Varnish  Co 50 

MacGowan  Coffee  Co.   (Inc.) > 40 

Marden,  Orth  &  Hastings  Corporation 56 

Maury-Cole    Co 40 

Memphis  Milling  Co 42 

Mid-West  Box  Co 39 

Millers'  Milling  Co 48 

Mitchell-Powers  Hardware  Co 44 

Moore  &  Co.,  Benj 50 

Mulford  &  Co.,  H.  K 39 

National  Association  of  Sheet  &  Tin  Plate  Manufacturers 54 

National  Federation  of  Construction  Industries 56 

National  Peanut  Cleaners  &  Shelters'  Association 52 

National  Petroleum  Association 50 

Nebraska  Millers'  Association 48 


67 

Page 

Nelson  Hardware  Co 44 

Nelson  Manufacturing  Co.,  N.  O 52 

New  Jersey  Cloth  Co 40 

Nowak  Milling  Co 48 

O'Brien  Varnish  Co 50 

Ohio  Falls  Iron  Co 45 

Oklahoma  Millers'  Association 48 

Olson  Coffee  Co 40 

Otis  Hidden  Co 45 

Paterson  &  Edey  Lumber  Co ■ 47 

Pecora  Paint  Co 51 

Peden  Iron  &  Steel  Co 45 

Penick  &  Ford  (Ltd.) 49 

Peters  Mill  Co.,  M.  C 48 

PhezCo 46 

Plymouth  Cordage  Co 41 

Puente  Oil  Co 50 

Purity  Oats  Co 43 

Republic  Rubber  Co 55 

Richardson  Paper  Co 52 

Richmond  Hosiery  Mills 44 

Riesener  Chocolate  Co 39 

Roberts  Corporation,  G.  G 51 

Root  Co.,  The  A.  I 44 

Rosenberg  Bros.  &  Co 44 

Rugg  &  Co.,  E.  T 41 

Sechler  Implement  &  Carriage  Co.,  D.  M 46 

Sewall  Paint  &  Glass  Co 51 

Sherwin-Williams  Co 51 

Shoemaker  &  Co.,  Robert 51 

Smeallie  &  Voorhees 52 

Smith  &  Co.,  Albert  D 42 

Smith-Courtney  Co 47 

Southern  Corn  Mills  (Inc.) 43 

Southeastern  Millers'  Association 49 

Solder  Mfrs.'  Association 54 

Stockton  Box  Co 39 

Strange  Paper  Co.,  John : 52 

Summers  Hardware  Co 44 

Sweet-Orr  &  Co.  (Inc.) J 50 

Sulpho-Nathol  Co 56 

Taylor  Co.,  H.  D 46 

Trimont  Manufacturing  Co 46 

True-Tagg  Paint  Co 51 

Tubbs  Cordage  Co 41 

Union  Oil  Co.  of  California 50 

Union  Manufacturing  Co 44 

Union  Salt  Co 53 


68 

Page. 

Wadsworth,  Howland  &  Co.  (Inc.) 51 

Waverly  Oil  Works  Co 50 

West  Coast  Soap  Co 53 

Westbrook  Grain  &  Milling  Co 49 

Western  Paper  Box  Co ^ 52 

Western  Shade  Cloth  Co 40 

Whitlock  Cordage  Co 41 

Wier  Lumber  Co.,  R.  W 47 

Worcester  Salt  Co 53 

Noncommittal  replies  in  re  guarantee  against  price  decline. 

American  Textile  Co 58 

Callaway,  Fuller  E 57 

Campbell  Fibre  Co 58 

Columbia  Package  Co 57 

Michigan  Hardware  Mfrs.'  Association '. 57 

Michigan  Stove  Co 58 

Mill  &  Mine  Supply  Co 57 

Northern  Hemlock  &  Hardwood  Mfrs.'  Association 57 

Omaha  Livestock  Exchange 57 

Philadelphia  Paper  Mfg.  Co 58 

Roebling's  Sons  Co.,  John  A 58 

Todd-Donigan  Iron  Co 57 

Favor  guarantee  against  price  decline,  tvith  reservations. 

American  Cranberry  Exchange 59 

P>aker  Mfg.  Co 60 

Dunlap  Hardware  Co 59 

Fox  Brothers  Hardware  Co 59 

Lowe  Bros.  Co 60 

National  Machine  Tool  Builders'  Association 60 

Teague  Hardware  Co —  60 

Thomas  Manufacturing  Co 59 


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